VTB Bank Georgia ups charter capital 8.3%
TBILISI. July 25 (Interfax) - VTB Bank Georgia will issue an additional 12.25 million common shares with par value of 1 lari (around $0.6 at the current exchange rate), increasing its charter capital 8.3%, the bank said in a press release.
Russia's VTB , the main shareholder of the Georgian bank with 96.31%, made the decision to increase charter capital.
The bank has been instructed to compile an issue prospectus and submit it to the National Bank of Georgia in the next two days. Bank shareholders have preferential rights to buy the new shares at par value.
VTB Bank Georgia has charter capital of 148.04 million lari ($89.37 million), split into 148.04 million common shares with par value of 1 lari. The placement should increase charter capital to 160.29 million lari ($96.77 million).
VTB Chairman Andrei Kostin announced plans to increase charter capital at VTB Georgia in late June when he visited Tbilisi.
The supervisory board of Russia's VTB last week announced that VTB Bank Georgia would be increasing charter capital with an additional issue of 12.25 million shares.
VTB Bank Georgia boosted assets 28.7% in 2012 to 545.1 million lari. That accounted for 3.8% of the assets in the Georgian banking sector. Equity was 70.8 million lari at the beginning of 2013. Net profit in 2012 fell 9.7% year-on-year to 8.4 million lari.
Lacarpa Enterprises Ltd owns 2.08% of VTB Bank Georgia.
The official exchange rate on July 25 stood at 1.6565 lari/$1.