“A Plus Insurance Company” will underwrite a new bond issue by “FinanceCreditBank”

“FinanceCreditBank” has found a way to meet the National Bank’s minimum capital requirements—the bank’s key shareholder, CJSC “Insurance Company ‘A Plus’,” will purchase the entire additional share issue. The decision was made at an extraordinary meeting of the bank’s shareholders on May 21.

The bank will increase its authorized capital by 160 million KGS at once—from 904.8 million KGS to 1.0648 billion KGS. To this end, 160 million additional common registered shares with a par value of 1 KGS each will be issued.

The placement will be conducted in a private placement. According to the shareholders’ decision, the new shares will be offered directly to “A Plus Insurance Company” CJSC (which already owns 99.9975% of the bank’s shares) or to the sole shareholder of the insurance company, Tashtemir uulu Erkin.

In effect, it is the insurance company that will finance the bank’s recapitalization, enabling it to exceed the 1 billion KGS threshold set by the regulator.

As a reminder, starting July 1 of this year, the minimum authorized capital of commercial banks in Kyrgyzstan must be at least 1 billion KGS. Previously, FinanceCreditBank had already increased its capital through the capitalization of profits and the issuance of additional shares; however, even after that issuance, the bank’s capital stood at 905 million KGS—below the regulator’s new requirements.

The placement of additional shares will continue until May 21, 2027. Payment for the new shares is to be made exclusively in cash.