CORPORATE COMMERCIAL BANK TO RAISE SUBORDINATED DEBT TO BOOST CAPITAL
Bulgaria's Corporate Commercial Bank (CCB) plans to hike its capital by raising subordinated term debt, which will be added to its Tier 2 capital, the lender said in a statement to the Bulgarian Stock Exchange (BSE) on October 19 2011.
CCB has already submitted a request to Bulgarian National Bank (BNB) to approve the issue. The central bank is expected to come up with a decision in 30 days.
The subordinated debt of 20 million euro will be provided by Bromak, the bank's 57.29 per cent-owner. The debt carries a coupon of seven per cent, while the repayment period is six years.
The transaction will provide for an increase in the bank's capital base, a move commensurate with BNB's capital adequacy requirements.
As of end-June, CCB's capital was 354.1 million leva.
