The shareholders of Šiaulių Bankas approved increase of the authorized capital and conversion of the EBRD loan

2018-09-24

The Extraordinary Meeting of Shareholders of Šiaulių Bankas approved the proposal of the Bank's Board to increase the Bank's authorized capital by 16.571 million euros with additional contributions issuing 57.14 million of ordinary registered shares. The price of to be issued shares is set at EUR 0.35 per share.

All new issue shares will be acquired by the European Bank for Reconstruction and Development (EBRD) using the option of converting the subordinated loan into Šiaulių Bankas shares.

"The decision to strengthen the bank’s capital shows that the largest shareholder positively assesses the strategy and prospects of the bank's performance. All shareholders of the bank will benefit from this step - the ownership of the bank's group will increase by 13.7% and will amount to 255 million euros. The increased bank's capital base will enable the Bank to continue actively developing its activities", - said Vytautas Sinius, Chief Executive Officer of Šiaulių Bankas.

EBRD is the largest shareholder of Šiaulių Bankas owning 18.2 per cent and the share of EBRD's holding will increase up to 26% after the loan is converted.

“Šiaulių Bankas has been consistently demonstrating successful performance for several years in a row. Being a significant shareholder of the bank, we appreciate this and aim to support further sustainable value creating development of Šiaulių Bankas as much as we can. The resulting stronger capital base of the bank will contribute to a very much anticipated continued growth of scope and range of financial services provided to Lithuanian businesses, public sector and individual clients," said Valdas Vitkauskas, Senior Banker of EBRD.

In 2009, in order to mitigate the impact of the financial crisis affecting the Lithuanian economy, EBRD granted a convertible loan of EUR 30 million to Šiaulių Bankas.The loan agreement provided options when the loan could be converted into shares at more favourable than market price. In the beginning of 2013 part of convertible loan in the amount of EUR 20 million was transformed into subordinated convertible loan. That strengthened Šiaulių bankas’ Tier II capital and enabled taking over part of Ūkio bankas assets and liabilities.

After implementation of the loan conversion and procedures relating to increase of the authorized capital, the authorized capital of Šiaulių Bankas will amount to 174.21 million euros.