Local bank Nextebank, which is owned by the investment fund Emerging Europe Accession Fund managed by Axxess Capital, has agreed to bring close to RON 100 million (EUR 22 million) of fresh capital to local lender Banca Carpatica.

The transaction, which turns Nextebank into Banca Carpatica’s biggest shareholder, with a 47% stake, has been approved by Romania’s National Bank.

Nextebank will buy 986 million shares at a price of RON 0.1, in a private placement carried out by Carpatica. The deadline for this transaction is January 29.

Local lender Banca Carpatica, which is still controlled by Romanian investor Ilie Carabulea, recorded a net loss of EUR 18.8 million last year. The loss includes provisions of EUR 7.2 million related to the bad loans. The bank has a non-performing loan rate of 39.4%.

The gross balance of loans decreased by EUR 96.6 million. The solvency ratio estimated for December 2015 amounted to 7%, which is way below the minimum solvency level required by the central bank.

Banca Carpatica urgently needed new capital. The US fund J.C. Flowers dropped the plan to take over Banca Carpatica, in December 2015. The lender then turned to Nextebank to acquire its shares.

In the past, Nextebank submitted an offer to buy the bank, which was rejected by Carpatica’s shareholders.

editor@romania-insider.com