Banks, EU – Baltic States, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 11:45

Citadele Banka’s capital increased by almost EUR 19 mln

BC, Riga, 24.04.2015.Print version
Citadele Banka’s regulatory capital increased by approximately another 9 million euros additionally to the EUR 10 million invested in the bank’s capital by the EBRD and Citadele’s new shareholders. Thus the shareholders have increased Citadele Banka’s regulatory capital by almost EUR 19 million within a short time period, reported BC bank’s press service.

In April, Citadele Banka’s shareholder European Bank for Reconstruction and Development (EBRD) refinanced part of the subordinated loan worth EUR 11.2 million issued by the State Joint Stock Company Privatisation Agency. Therefore, the total amount of the EBRD’s subordinated loan issued to Citadele Banka is EUR 18.4 million. EBRD also extended the loan repayment term by four more years until August 2020.

 

As Citadele Banka continues repaying the State Joint Stock Company Privatisation Agency’s issued subordinated loan, in April, it repaid the subordinated debt of EUR 18.4 million to the lender ahead of time. Thus, the bank reduced its outstanding subordinated debt amount to EUR 34.72 million. During this year, Citadele has paid EUR 2.4 million in interest for the received subordinated loan.

 

As the result of the changes outlined above Citadele Banka’s regulatory capital has increased by almost EUR 9 million.

 

In accordance with the agreement signed between Citadele Banka and State Joint Stock Company Privatisation Agency, Citadele Banka will repay the outstanding subordinated loan amount at the end of 2017, continuing interest payments for the loan.

 

“The new shareholders mark a new development phase for Citadele: it will become an even more powerful market player. As the bank develops, it will be able to provide a larger contribution to the Latvian and Baltic economy. Therefore we will do everything it takes to generate an increasingly larger added value for our country,” emphasizes Guntis Beļavskis, Citadele’s CEO.

 






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