Banca Comerciala Carpatica (Carpatica Commercial Bank) is the third bank on the market to publicly announce its intention of issuing bonds to finance loans it grants to customers. So far, BRD and Raiffeisen Bank have launched such issues, which were oversubscribed.
Carpatica management called a General Meeting of Shareholders to approve the bond issue and to empower the management board to set the issue parameters.
"We will propose to our shareholders an issue of bonds worth 500 billion ROL. There will probably be a single issue, because each issue carries certain costs," Nicolaie Hoanta, the bank's president, told Ziarul Financiar.
The value of the bonds Carpatica plans to issue is identical to that of BRD's issue, while the value of bonds sold by Raiffeisen Bank reached 1,380 billion ROL.
As with the other banks, the bond issue to be launched by Carpatica was triggered by the need to secure long-term financing. The amounts to be attracted will be used as additional financing sources for loans granted by the bank.
"Whereas the municipal authorities were able to repay the issued bonds from the taxes they collected, banks can certainly do the same, on the basis of the revenues they derive," says the bank's president.
Carpatica will increase its share capital by 190 billion ROL, to 915 billion ROL through an issue of bonus shares. The bank's shareholders registered after June 3rd, when the General Meeting of the Shareholders is held, will receive 0.263 bonus shares for each share they hold. The capital will be increased by including the share capital reserves made from the bank's last year net profit and from issue premiums derived from a previous capital increase.
vlad.nicolaescu@zf.ro
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