Cyprus Mail
Business

Recapitalisation of CDB completed

By Angelos Anastasiou

The long-awaited deal between the shareholders of the Cyprus Development Bank (CDB) and a Russian group for the recapitalisation of the lender has been finalised, a source has told the Cyprus Mail.

The bank, rumoured to have been facing hardship as a result of the adverse economic environment, slashed payroll costs last year through a voluntary exit scheme, and had gone public with investor interest from “various groups”, which has since materialised into negotiations with the Russian buyers.

But the group of the bank’s shareholders – including such heavyweights as Constantinos Shacolas, Leonidas Ioannou, and the Leventis family – have agreed the recapitalisation of the bank with Russian investors via the injection of “at least €25 million” of fresh capital into the lender.

It is understood that, as a result of the new investors’ entry, existing shareholders’ stakes in the bank will be diluted accordingly.

Reports of talks between CDB’s shareholders and a Russian group were confirmed as early as last November, culminating in the finalized deal which was announced internally to the bank’s staff.

CDB was established in 1963 as a state-owned company to promote economic development and was granted a commercial banking licence in 2001. It was sold by the government to private interests in 2008 for €75 million.


Related posts

Underground recycling bins project to kick off in Larnaca

Gina Agapiou

Turkey vetoes Cyprus from disarmament conference

Nick Theodoulou

President says Cyprus and Israel begin new era of cooperation

Nick Theodoulou

Court ruling allows ministry to finalise bus deal with new company

Elias Hazou

Gesy negotiations with private hospitals progressing

Nick Theodoulou

Turkish Cypriot football team calls on Fifa to allow international games

Evie Andreou

19 comments

Comments are closed.