Eurobank, cash for aggressive growth

The first move announced by Greece’s Eurobank after last year’s takeover of Banc Post is a capital increase, in order to preserve a stake above 51% in the Romanian bank, together with Banco Portugues de Investimento (BPI). Banc Post shareholders decided to increase the bank’s capital by $36 million until March 15, $16 million of which account for a debt for equity swap (the bank was granted two loans by the International Finance Corporation and EBRD), said David Watson, advisor of the international operations management team within EFG Eurobank Ergasias, Banc Post’s largest shareholder. “We will bring $11 million for this capital increase along with our partner, Banco Portugues de Investimento, in order to maintain an interest above 51%. Some of the shareholders will be disappointed, though, because they will see their stake shrink, following EBRD’s and IFC’s entry,” Watson said. Elena Petculescu, Banc Post president announced the bank had made 220bn ROL  ($7.6 million) in 2002 net profit. The Greek shareholders, however, are not satisfied with the bank’s market share and profit and say they will resort to an aggressive growth policy. ZF