Bank Aval Increases Charter Fund by USD 119 Mln.

At their EGM on August 11, 2006, Bank Aval’s (BAVL: Hold) shareholders approved a share capital increase by USD 119 mln to USD 416 mln through an additional share emission. The bank issued six billion common shares at a par value of USD 1.98. Alexander Viktorov: The additional share capital increase was inevitable after Raiffeisen decided to sell its Ukrainian subsidiary, Raiffesenbank-Ukraine, to Hungry’ OTP rather than merge it with Aval. In addition Aval’s ambitious expansion into the retail segment also required a share capital increase to support the required capital adequacy level.