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Raiffeisen invests 50 million EUR in " Priorbank "

Raiffeisenbank © ADVANTAGE AUSTRIA

© ADVANTAGE AUSTRIA

05.11.2008

On October 16, 2008 General Shareholders Meeting of "Priorbank" JSC decided on the additional issuance on shares, which would result in increase of the authorized capital of the bank by 50 million EUR or by 50%.

On October 20 Priorbank arranged for closed subscription on shares, which ended on 29 October 2008. Practically all the shares (99.7%) were acquired by the principal shareholder of the bank Raiffeisen International Bank-Holding AG. Cash funds for the purchased shares have entered the bank, and are accumulated on the interim account.

"The shareholders consider this decision as an important step in implementation of the strategic targets aimed at business expansion and strengthening of the bank's positions in the financial market of the country", commented on this decision Sergey Kostyuchenko, the Chairman of the Board of Priorbank. "Increase of the authorised capital out of the funds of Raiffeisen International is the logical continuation of the previous actions of Priorbank towards this direction."

In June 2008 Priorbank increased its authorised capital from 102.8 billion Br to 270 billion Br out of the internal sources. In August-September 2008 Raiffeisen International Bank-Holding AG bought some minority stakes, which resulted in increase of its share from 63.05 to 81.41%.

During the first 9 months of 2008 Priorbank has demonstrated a stable and successful growth of its main business activity directions.

The profit for the period under report amounted to 84.4 billion Br, which is 1.5 times higher than during the similar period of the previous year. The ROE is 29.8% and the ROA amounts to 2.4%.

As of October 1, 2008 the bank resource base was 4,063.5 billion Br (USD 1 925 million) having increased by 35.9%. Legal entities funds were 1,723 billion Br (USD 816 million) or 42% in the bank resource base, whilst private individual loans amounted to 783,3 billion Br (USD 371 million) or 19%. During this period resources of legal entities grew by 72%. Private individuals' deposits have increased by 43%.

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Priorbank JSC is a member of RZB Group and a subsidiary of Raiffeisen International Bank-Holding AG. Raiffeisen International operates one of the largest banking networks in CEE. 17 markets in Europe 's growth region are covered by subsidiary banks, leasing companies and a range of other financial service providers. In more than 3,000 business outlets 14.4 million customers are served. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB), which owns more than two thirds of the common stock. The remainder is in free float, with the shares listed on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group.

Source:
Public Relations
Priorbank, JSC
Tel. +375 17 289 92 95
www.priorbank.by

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