Romanian government increases capital share in IIB

Romanian government increases capital share in IIB
By bne IntelliNews July 16, 2018

Romania has increased its share in the paid-in capital of the International Investment Bank (IIB) up to 7.04% by providing an additional instalment of €4mn, the Moscow-based multilateral lender said on July 13.

As a result, the Romanian share in the IIB increased to 22.45mn, making Romania the fifth largest shareholder of the bank.

“Additional capitalisation of IIB by the Romanian side is a proof of Bucharest’s trust and confidence in our abilities to efficiently implement the new growth strategy for 2018-2022, based on positive results of the bank’s reform and relaunch of activities,” Alexandru Florescu, acting chairman of the IIB board, said.

The transfer of funds took place a month after the IIB 109 Council Meeting in Yaroslavl, where the need for additional capitalisation was heavily accented with a view to providing long-term development of the bank, including a further increase of the investment volumes and loan portfolio within the new five year strategic period launched at the beginning of 2018, the bank said in a statement.

The IIB is a multilateral development institution founded in 1970 and reformed in 2012. Its current nine members/shareholders are Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam, all participating through intergovernmental agreements. In April 2015, the IIB opened its first European regional office in Bratislava.

The current volume of the Romanian loan portfolio exceeds 78mn. IIB became the first multilateral development bank to issue euro denominated bonds on the Bucharest Stock Exchange (BVB). In September last year, the bank announced it had made a successful bond placement on the BVB, placing bonds in the Romanian national currency amounting to RON300mn (€65mn) and in euros totalling €60mn. That was the IIB’s third issue in Romania.

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