Raiffeisen Int'l to raise EUR 1.25 bln to boost network banks

Raiffeisen International announced this week in a release that it planned to increase its core capital by EUR 1.25 bln in order to strengthen the capital base of Raiffeisen International and its network banks. In order to increase its capital, the bank will issue EUR 600 mln in participation rights and EUR 650 mln in hybrid Tier 1 capital. Both of the issuances are to be fully subscribed by parent Raiffeisen Zentralbank Oesterreich AG. Andrii Parkhomenko: Raiffeisen’s official announcement did not explicitly state the destinations for the issuance’s proceeds, though, given high exposure of the bank to Ukrainian market, we expect a substantial portion could be used to support the bank’s Ukrainian subsidiary – Raiffeisen Bank Aval (BAVL).