OREANDA-NEWS. March 24, 2010. On 23 March, the shareholders of Raiffeisen Bank Aval <BAVL UK BUY> approved the decision to increase the Bank’s statutory capital by UAH 582.8mn or 24.1% to UAH 3,002.8mn. The shares were placed in two stages (from 24 November 2009 to 23 January 2010) at UAH 0.16, while the shares par value amounted to UAH 0.10.

Millennium Capital sees the news to be positive for BAVL, since, by our estimation, the statutory capital increase will strengthen the bank’s capital adequacy ratio (CAR) from 16% to 18% in 2010 (vs. 10% required by the NBU). Millennium Capital has a positive outlook at BAVL’s shares, although Millennium Capital does not exclude a decrease in their price growth rate due related to the recent rally among the shares of Ukrainian banks.