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Report: Bulgaria-based Investbank mulls capital hike

Investbank JSC plans to increase its capital by up to 23.9 million leva via the issuance of new shares, with its shareholders to vote on the proposed capital hike on Feb. 10, SEENews reported.

The bank, whose registered capital currently amounts to approximately 131.7 million leva, plans to offer 21,944,445 shares to existing shareholders at a price of 1 lev per share, according to the Jan. 8 report.

The bank also plans to repay two perpetual bond issues worth 39.2 million leva on condition that their holders agree to invest proceeds from the bond buyback to acquire additional 1,960,500 shares of Investbank. The shares, which have a par value of 1 lev apiece, would therefore be subscribed for a price of 20 leva each, SEENews noted.

Fellow Bulgarian lender First Investment Bank AD also recently announced plans for a capital hike. The 2019 comprehensive assessment of six Bulgarian lenders, carried out by the ECB, uncovered a total capital shortfall of €314.7 million at the two banks, with both lenders saying at the time they had taken measures to address the findings.

As of Jan. 8, US$1 was equivalent to 1.76 Bulgarian leva.