The board of directors of Norway-based Monobank ASA approved the completion of a private share placement through which Bulgarian lender TBI Bank EAD will become owner of a 9.1% stake in the Norwegian digital lender.
The deal involves the issuance of 24,826,567 new shares of Monobank at a subscription price of 2.30 Norwegian kroner per share, to be purchased solely by TBI Bank. Completion of the private placement is conditional upon registration of the share capital increase in the Norwegian Register of Business Enterprises.
Gross proceeds from the transaction are expected to amount to 57.1 million kroner, and will be used by Monobank to finance its growth strategy, provide the necessary capital for further cross-border expansion and to strengthen the regulatory capital, the Norwegian lender noted in its Nov. 8 release.
TBI Bank said separately on the same day that the purchase is part of its parent 4finance Holding SA's broader strategy to develop its near-prime business in the Nordic region and the first step in exploring potential cooperation with Monobank.
As of Nov. 8, US$1 was equivalent to 8.34 Norwegian kroner.
