Šiauliu Bankas AB said it received a notice from the European Bank for Reconstruction and Development to convert the total outstanding principal amount of a loan to the Lithuanian bank into ordinary shares in the lender.

The loan has a total outstanding principal amount of €20 million, which will be converted with a conversion price of 35 cents per share. It was granted to Šiauliu Bankas under a subordinated convertible loan agreement concluded in February 2013.

Šiauliu bankas said it will convene a general meeting of its shareholders to carry out the EBRD's conversion demand.

The conversion price implies that the EBRD would receive just over 57 million shares in the transaction. Šiauliu Bankas has just under 453 million shares outstanding, and the EBRD is its largest shareholder with a 21.89% stake, according to S&P Global Market Intelligence data.