Austria's Raiffeisen Bank International AG on Wednesday said it may increase its equity capital by up to €2.25 billion ($3.06 billion) in the next six months. This is around 40% of the bank's current market worth of nearly €5.4 billion.
According to a report by Reuters, RBI has long said it could sell more shares to bolster its relatively weak balance sheet. RBI is the second-biggest lender in central and eastern Europe.
RBI in a statement said that the timing and size of any transaction is subject to board approval and market conditions.
A potential transaction would significantly increase RBI's free float. RBI's unlisted parent company Raiffeisen Zentralbank expects to dilute its 78.5% stake in the Viena-based lender. Institutional and private investors own the remaining stake in RBI, the report said.
RBI was looking at redeeming €2.5 billion in non-voting participation capital in full or in part in the near future. RBI was referring to the money it raised from the Austrian government and private investors to help weather the financial crisis. Austria provided €1.75 billion of the total bailout fund, Reuters said.
Join the Conversation