Erste Bank Hungary raises capital after state, EBRD buy in

Deals

Ten days after the state and the  European Bank for Reconstruction and Development (EBRD) bought shares in Erste Hungary, Austriaʼs Erste Group raised capital at its Hungarian unit on Friday with the sale of about HUF 78 billion in new shares, which were subscribed through a private placement, according to Hungarian news agency MTI.

Registered capital of Erste Hungary was raised to HUF 146 billion through the issue, which involved a sale of 44 billion shares, according to MTI. The new shares, with a nominal value of HUF 1, were subscribed for HUF 1.7727 apiece, in cash, MTI added.

The Hungarian state and the EBRD on June 20 finalized the acquisition of 15% stakes each in Erste Hungary, as per an agreement made in February 2015. Hungary reportedly paid HUF 38.9 billion for its 15% stake, and EBRD paid roughly the same amount. The new capital raise of HUF 78 billion roughly matches the amount paid in by the state and EBRD.

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