Patria Bank, a medium-sized bank in Romania owned by a private equity fund managed by Axxess Capital, will get a new EUR 4.3 million subordinated loan from its majority shareholder. The loan has a maturity of six years.

The bank got another such loan worth EUR 4.35 million in August 2016. The fund plans to increase the bank’s share capital by converting the two subordinated loans into equity.

Patria Bank has called a general shareholders meeting to approve a capital increase of some EUR 13 million. EEAF Financial Services, which owns a 76.2% stake in the bank, will contribute some EUR 9.9 million to this operation, which includes the conversion of the EUR 8.65 million subordinated loans and a cash contribution of EUR 1.25 million. The bank’s minority shareholders can come up with EUR 3.1 million worth of new capital to keep their holdings unchanged.

Patria Bank, which finalized a merger with Banca Carpatica in 2017, recorded net losses of some EUR 9.2 million in 2017, up by 10% over the previous year. The operating income dropped by 30%, despite a 10.5% increase in its loan portfolio in 2017. Patria Bank is listed on the Bucharest Stock Exchange and has a market capitalization of EUR 72 million.

Patria Bank to close 28 branches in Romania

editor@romania-insider.com