Rzb Finance

Rzb Finance

Rzb Finance

December 07, 2011, 10:14 AM EST

By Boris Groendahl

(Updates with market reaction, analyst comment in fourth and fifth paragraph.)

Dec. 7 (Bloomberg) — Raiffeisen Zentralbank Oesterreich AG, the majority owner of Raiffeisen Bank International AG, is seeking shareholder permission to fill a 2.5 billion-euro ($3.4 billion) capital gap by selling new shares and other securities.

RZB, which is unlisted and controlled by eight regional Austrian cooperative banks, scheduled a shareholder meeting for Dec. 28 by publishing the invitation in Austria’s official gazette. It could issue as many as 3 million new shares in RZB, or half of the outstanding, and sell non-voting securities known as participation capital, according to the agenda.

RZB, whose main asset is a 79 percent stake in eastern Europe’s third-biggest lender Raiffeisen, needs the extra capital to meet the 9 percent minimum ratio defined by the European Banking Authority. Raiffeisen said Nov. 24 that it and RZB were working on about 20 measures to fill the gap without seeking state aid or selling new shares in the listed business. The measures include reducing assets, retaining earnings and creating capital.

Raiffeisen’s shares rose as much as 6.7 percent in Vienna trading to the highest intraday level since Oct. 28. They were up 3.6 percent at 21.35 euros by 3:49 p.m., making Raiffeisen the best performer in the 46-member Bloomberg Europe Banks and Financial Services Index, which was 1.9 percent lower.

‘Self-Help’

“We believe Raiffeisen has more self-help options than the market realizes,” said Daniele Brupbacher, an analyst at UBS AG with a “neutral” rating on the stock. “Delivering in these areas is positive in my opinion.”

New capital could be created by swapping 500 million euros to 1 billion euros of non-voting capital currently issued by both Raiffeisen and RZB into new stock, Raiffeisen said Nov. 24. The new shares RZB is requesting could be sold against cash or contribution-in-kind, which would make that swap possible under Austrian share law. Raiffeisen hasn’t elaborated on other options to create new capital.

PR Newswire/euro adhoc/ EANS-Tip Announcement: RZB Finance Jersey II Limited / Indication Notice For Financial Reports Tip announcement for financial statements transmitted by euro adhoc. The issuer is responsible for the content of this announcement. The company RZB Finance Jersey II Limited is declaring its financial reporting publication plan below: Report Type: Half Yearly Report German: Publication Date : 31.08.2010 Publication Location: http://www.rzb.at/investor English: Publication Date : 31.08.2010 Publication Location: http://www.rzb.at/investor COMMENT: RZB Finance (Jersey) II Limited's Half-Yearly Financial Report 2010 was published at http://www.rzb.at/investor--->Funding--->Offering Documents--->Key Info on RZB Finance (Jersey) II Limited Please disregard the earlier message referring to the company's Annual Report 2009 in the comment. issuer: RZB Finance Jersey II Limited Grenville Street 22 JE- St. Helier Jersey / Channel Islands sector: Banking ISIN: XS0173287862 indexes: stockmarkets: stock market: Luxembourg Stock Exchange language: English The content and accuracy of news releases published on this site and/or distributed by PR Newswire or its partners are the sole responsibility of the originating company or organisation. Whilst every effort is made to ensure the accuracy of our services, such releases are not actively monitored or reviewed by PR Newswire or its partners and under no circumstances shall PR Newswire or its partners be liable for any loss or damage resulting from the use of such information. All information should be checked prior to publication.

Posted by Admin on December 08, 2011 - 11:31 am Posted in egold finance
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