$350 million capital increase for Audi

Whole amount already covered by clients

Bank Audi has issued subordinated debt bonds of $350 million approved by the Central Bank (BDL). "The new debt issuance is a sub-debt, which is accounted in the equity of the Bank in the form of Tier II capital, it aims to increase its financial flexibility," according to a source at the bank’s Capital Markets Department.

The annual interest rate paid on these bonds is 6.75 percent, payable on a quarterly basis until 2022. Payment is subject to the bank’s available audited profits, as per BDL conditions, following the bank’s general shareholder assembly.

Subscription starts on the morning of this Friday September 27 and ends at noon on September 28. The bank said subscription to the subordinated debt bonds was limited to two days only because it has already pre-marketed the issuance and saw positive interest. The bank, through its branches, has been proposing this investment to its clients during last weeks, and pre-subscriptions have been concluded with a large number of clients, covering the whole amount.

The subordinated debt bonds are not guaranteed. Subscribers should refer to Bank Audi about subscription terms and procedures.

Shareholders’ equity of Bank Audi was $2.677 billion at end 2012. The current issuance represents a 13 percent sizable increase.