BAVL Announces Plans For Additional Share Issue At Market Price

At their AGM on April 23, Raiffeisen Bank Aval (BAVL: BUY) shareholders are scheduled to approve a USD 297 mln additional share issue at market price. The number of shares, thus the price, is to be issued will be decided at the AGM. In related news, BAVL announced plans to attract roughly USD 1 bln in syndicated loans in 2007.  Alexander Viktorov: This will be the first additional share addition to be held at market price in line with a new law that removes the tax on profits from share emissions. The law came in to effect in January.  However, there is some question as to what exactly “market price” means and the law does stipulate exactly how to calculate the price. If BAVL conducts its emission at the current market price of USD 0.19 per share, this will constitute a 7.7% increase in shares.