Business News

Abanka Slashes Share Price to Raise EUR 90m

Ljubljana, 25 September (STA) - Slovenia's third-largest bank, Abanka, plans to embark on another round of recapitalisation after its attempt to raise EUR 50m with a share issue failed earlier this month. The share price will be reduced to EUR 4.2 from EUR 7.

This follows from a decision adopted by the supervisory board late on Monday that will be put to shareholders at a forthcoming AGM. The goal is to raise EUR 90m but the offer will be considered successful if the bank raises EUR 50m.

Additionally, the supervisors confirmed the management board's plan to issue subordinated debt of EUR 25m, which will be purchased by insurer Zavarovalnica Triglav, Abanka's single largest owner.

The move appears designed as a stop-gap measure to provide much needed capital, as Abanka is in desperate need of cash after having to set aside massive provisions for bad loans.

Along with NLB and NKBM, Abanka is one of the three banks in the country that will likely benefit from government plans to set up a bad bank to shore up bank balance sheets.

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