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Lender Volksbank Romania approves extension of bond issue to lei 170m at most

Shareholders of Volksbank Romania agreed to prolong the term for the issue of bonds worth a maximum 170 million lei in the period June 2009 - June 2010, with maturities between 3 and 5 years, according to a lender's decision.

The bond issue aims to ensure the bank's liquidity in lei.

The issue will be unlisted and unsecured, in five installments the most, with a maximum value of 20 million lei per installment.

The nominal value of a bond will be 100 lei, while the coupon will be fixed or variable and will be paid annually or semiannually.

The Volksbank head, Gerald Schreiner, declared for NewsIn in an interview at the end of May the lender does not require any additional capital after it reported a solvency rate of 18.27 percent at the end of March.

Moreover, the lender's equity, including reserves, share capital and retained earnings amounts to around 300 million euros.

The lender received a new financing line in September last year of 140 million euros and is currently excessively liquid, especially as mortgage loan demand, the bank's main product, is very reduced.

Volskbank received on average 2,000 applications a month last year for mortgage loans, but now it reports just 5 - 10 requests, due to consumer reticence in the harsh economic background.

The lender asks for a minimum down payment of 35 percent of the mortgage loan.

Volksbank reported a gross profit of 18.4 million euros in the first quarter of the year according to the International Financial Reporting Standards (IFRS), a surge from the 7 million euros in the similar period last year.

The central lender BNR asked for capital hikes in the case of 12 lenders for a total value of around 4.15 billion lei after the stress tests applied at the request of the International Monetary Fund, people from the market told NewsIn.

Volksbank currently ranks third in the Romanian banking system according to assets, with a market share of 6.7 percent.

 

Sursa: http://www.newsin.ro

Tags: million lender issue volksbank bnr