VAS "Privatizācijas aģentūra"
Kr.Valdemāra 31, Rīga, LV-1887
Tālr: 67 021 358
E-pasts: info@pa.gov.lv

Citadele Bank

In order to start implementing restructuring plan of Parex Banka, on June 1, 2010 the Cabinet of Ministers of Republic of Latvia (CM) assigned the PA to establish a credit institution with initial share capital of 4 million lats. On June 29, 2010 the Finance and Capital Market Commission (FCMC) decided to issue a banking licence to Citadele Bank, and on June 30 the bank was registered in the Commercial Register. According to the restructuring plan Citadele Bank is newly established bank whose sole shareholder initially is the PA and which will take over substantial part of Parex Banka’s assets and liabilities upon splitting of Parex Banka. The remaining part of Parex Banka will perform limited scope of financial operations, mainly focusing on long-term return of funds.

According to the restructuring plan, splitting of Parex Banka’s assets and transfer to Citadele Bank was completed on August 1, 2010. In order to ensure the required capital adequacy, the PA invested in the share capital of Citadele Bank thus increasing it to 103 million lats. As of August 1 Parex Banka and Citadele Bank became operationally independent credit institutions.

Citadele Bank, the PA and the European Bank for Reconstruction and Development (EBRD) signed an agreement on July 30, 2010, whereby the EBRD becomes a shareholder of Citadele Bank holding 25% of share capital plus 1 voting share. The CM approved the agreements on sale of Citadele Bank shares owned by the PA to the EBRD for the price equivalent to the share nominal value.

In July 2013 the CM decided to resume the process of attracting investors to Citadele Bank. In report submitted to the CM it was concluded that the initial goal set by the restructuring plan — to establish financially stable financial institution — has been achieved. By achieving the objectives of the restructuring plan Citadele Bank is successful and profitable, and its further development requires private capital.

In the tender process Société Générale, the international investment bank, was selected as the financial advisor to the PA in connection with sale of Citadele Bank. The financial advisor will assist the PA in determining the best model for attracting investors, and additionally will assist with the organisation of practical implementation. International law firm Linklaters has been selected as the legal advisor for the sale process.

 In July 2013 the Cabinet of Ministers of the Republic of Latvia (CM) decided to resume the process of attracting investors to Citadele Bank. In report submitted to the CM it was concluded that the initial goal set by the restructuring plan — to establish financially stable financial institution — has been achieved. By achieving the objectives of the restructuring plan Citadele Bank is successful and profitable, and its further development requires private capital.

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For general inquiries:

Mr Vladimirs Loginovs, Chairman of the Board

(vladimirs.loginovs@pa.gov.lv)

 

For information on Citadele Bank sales transaction:

Mr Stanislas Lecat,  Société Générale S. A.

(stanislas.lecat@sgcib.com)

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