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VIENNA, July 2 Austria's Erste Group Bank
has raised around 660 million euros ($860 million) to
help repay state aid in a two-stage capital increase that will
ready its balance sheet for tougher regulatory requirements.
Central and eastern Europe's third-biggest lender announced
plans for the capital increase last week, saying it would use
the money to help repay 1.76 billion euros in non-voting
participation capital it raised in 2009 to help it weather the
Austria provided two thirds of that capital, and private
investors the rest.
The placement price for new shares was set at 18.75 euros
each in an accelerated book-building process that took in 660.6
million euros, Erste said.
A rights issue for existing shareholders follows at a
subscription ratio of four new shares for each 45 that investors
The stock, which closed on Monday at 20.41 euros, was down
3.8 percent at 19.645 euros by 0805 GMT while the Stoxx European
banking index was down 0.9 percent.
Results of the subscription offering are due on July 18.
J.P. Morgan, Morgan Stanley and Erste Group are joint global
coordinators and joint bookrunners, while Commerzbank and ING
Bank act as co-lead managers.
($1 = 0.7671 euros)
(Reporting by Michael Shields; Editing by Mark Potter)