Serbia's Agrobanka plans up to EUR 100mn capital increase in 2012.

By bne IntelliNews December 23, 2011
Serbia's Agrobanka plans to inject some EUR 50mn to EUR 100mn of fresh capital next year, its chairman Dusan Antonic told news agency Beta. The capital hike could take place by the middle of 2012, Antonic said, adding Agrobanka has already received the preliminary approval of the state, which is its single largest shareholder. "We would like to raise Agrobanka at a higher level considering the significance of the agriculture and the increasing needs for funding of the sector," Antonic said. Agrobanka ranked 11th largest bank by assets among Serbia's 33 active lenders at the end of September when its assets totalled RSD 78.6bn (EUR 760mn). The Serbian government controls 20% of Agrobanka, Hypo Custody follows with a 6.9% stake, while the remainder belongs to smaller shareholders. Agrobanka is a blue-chip company on the Belgrade bourse. According to Antonic, Agrobanka could issue by the end of 2011 new shares on behalf of the state and thus raise its ownership to 25%. The bank's shareholders decided in November to convert its debt to the state into equity via issuing RSD 493mn of new shares. Antonic also said the share of bad loans at Agrobanka is between 20% and 25%, adding there is a deficit of sources for long-term financing and working capital because of the economic crisis. Beta also quoted Branislav Pesic, board member at Agrobanka, as saying the bank posted a nine-month loss of RSD 2.2bn. He expects a negative result for the whole of 2011. "I think we will not post a positive result this year precisely because of the poor state of the economy, which was hit by the second wave of the crisis," Pesic said.

Related Articles

Serbia's external debt up 4.7% y/y to EUR 25.4bn at end-Feb 2013.

Serbia's foreign debt rose an annual 4.7% y/y to EUR 25.4bn at end-February after climbing 6.6% on the year in January, central bank data showed. In monthly terms, however, the external ... more

Vip Mobile Serbia signs five-year managed services deal with Ericsson.

Swedish company Ericsson said it has signed a five-year managed services contract with Vip Mobile - the Serbian arm of Telekom Austria Group. The agreement includes field maintenance services for ... more

Telenor and Societe General possible buyers of Serbia's KBC Banka - report.

Norwegian telecommunications firm Telenor and France's Societe General are seen as possible buyers of the Serbian unit of Belgium's KBC Group, which has been on sale for several years now, a ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss