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Raiffeisen to Sell $3 Billion New Shares to Redeem State Aid 

January 9, 2014
Boris Groendahl, Bloomberg

Raiffeisen Bank International AG (RBI), Austria’s third-biggest lender, may sell as much as 2.25 billion euros ($3 billion) in new shares in the first half of the year to repay state aid and boost its capital buffers.

Raiffeisen, which is 79 percent-owned by a group of cooperative banks via Raiffeisen Zentralbank Oesterreich AG, expects to significantly increase its free float in the deal, the bank said in a statement today. The exact timing and size will depend on “market conditions” and board approval, the company said.

“The strengthening of the capital base is intended to prepare Raiffeisen Bank International for the implementation of Basel III rules,” the lender said in a statement. “The transaction may be implemented in the next six months.”

Read more: Bloomberg

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