Ukrsotsbank AGM Will Vote on Charter Fund Increase

According to Interfax, a 5% additional share issue is on the agenda of Ukrsotsbank’s (USCB: BUY) AGM on May 14. The bank plans to issue 500 mln common shares. Subscription is expected to be held from July 3 to July 25, 2008. Alexander Viktorov: Though the news indicated the issue would be held at par (UAH 0.10), the implied charter fund increase would be only USD 10 mln, which does not correspond to the needs of a bank its size. Hence, we think that subscription will be held at the market price. Given the current market price (USD 0.21), the capital increase would amount to about USD 100 mln, which translates into a 50% charter fund increase to more than USD 300 mln.