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Report: RBI must proceed with Polish unit IPO by June-end, regulator says

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Report: RBI must proceed with Polish unit IPO by June-end, regulator says

The Polish Financial Supervision Authority still expects Raiffeisen Bank International AG to meet the June 30 deadline set for the IPO of Polish unit Raiffeisen Bank Polska SA, despite the lender's decision to suspend prospectus proceedings, Reuters reported June 7.

The FSA confirmed that RBI had suspended the proceedings but that it expects the bank to live up to its commitment for the IPO, according to the report. Media outlets reported recently that RBI and FSA representatives met at the end of May, but the regulator later said the June 30 IPO deadline remained in place.

News agency PAP reported at the time that RBI wanted to postpone the offering owing to uncertainty over the evaluation of the Polish unit's foreign-currency loan portfolio in the context of planned regulatory changes.

An RBI spokeswoman reportedly told the newswire that the Austrian parent is in discussions with the Polish regulator regarding the IPO, but did not provide further details.

Analysts told the newswire that the FSA could strip RBI's voting rights in the Polish unit or force it to sell the bank if the IPO requirement is not met, although one observed that the regulator has not previously forced a loss-making IPO to take place.

RBI is obliged to float at least 15% of the unit during the IPO and list its own shares in Warsaw by June 2018 if it does not further increase the free float of Raiffeisen Bank Polska to 25%. RBI CEO Johann Strobl said recently that the parent would not offer more than 15% of Raiffeisen Bank Polska in the June IPO, given current market conditions.