ELLA Bank said the loan will be disbursed in several installments. This is the third subordinated loan Mortgage Holding extended to ELLA Bank after a ten-year €1 million subordinated loan at the end of June and a similar-term €1.5 million at the end of March this year.
The main activity of ELLA Bank is mortgage lending to retail clients and SMEs. The bank was transformed from a savings cooperative to a commercial bank in 2004. Mortgage Holdings, owned by Emerging Europe Capital Investors (EECI), holds 90.25% of the bank’s registered capital of Ft 2 billion. The EECI fund will end its run in two years, and ELLA Bank said at the end of March that Mortgage Holdings will either set up a new fund to buy the bank’s shares, or sell the bank.
According to its unaudited first-half report, Ella Bank had pre-tax profits of Ft 383 million in the first half of 2006, sharply up from Ft 27 million a year earlier. Loans to clients increased 160% to Ft 66.72 billion in the twelve months to the end of June 2006, and total assets increased 165% to Ft 74.06 billion.
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