Business News

Factor Banka Capital Increase Fails, Talks Started with Foreign Investors

Ljubljana, 28 June (STA) - Factor banka, a small Slovenian bank, has failed to raise EUR 25m as part of a capital increase effort backed by shareholders in April. As existing shareholders did not use their pre-emption right to subscribe to new shares, talks have been launched with two potential foreign investors, the bank said on Friday.

The bank said that the potential investors, who have been enabled due diligence, demanded different subscription conditions, which is why the decision on a new shareholders meeting will be taken in the coming days.

Factor banka made an estimated net loss of EUR 21.15m last year after reporting a net profit of EUR 1.26m in 2011. It reported a EUR 737,000 net loss for the first quarter of this year, after posting a EUR 932,000 profit in the same period last year.

Like most other Slovenian banks, Factor banka is under the heavy burden of impairments and provisions. These rose to EUR 51.3m in 2012 from 15.6m the year before.

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