EBRD shareholders back €4 billion increase in Bank’s paid-in capital
December 19, 2023
Third increase in EBRD’s history takes capital base to €34 billion
The governors of the European Bank for Reconstruction and Development (EBRD) have approved a resolution to increase the Bank’s paid-in capital by €4 billion, bringing its capital base to €34 billion.
The additional capital from shareholders will be used to provide significant and sustained investment for Ukraine’s real economy, both in wartime and in reconstruction, and will help support the EBRD’s priorities in all economies where it operates. The EBRD has already deployed more than €3 billion in Ukraine since Russia’s invasion of the country in February 2022.
This is the third capital increase in the EBRD’s history, following similar decisions in 1996 and 2010. It follows the governors’ recognition in May 2023 that supporting Ukraine should be the Bank’s highest priority – now and in the future – while also ensuring that it can continue to pursue its strategic priorities across all its regions.
EBRD President Odile Renaud-Basso said: “This is a historic moment for the EBRD. The decision by our shareholders reaffirms their confidence in the Bank, with its unique mission and business model focused on delivering impact.”
“The increase in the Bank’s capital will enable us to deliver more and become an even stronger Bank – a stronger Bank for Ukraine, a stronger Bank for all our economies and clients, and a stronger Bank for our shareholders,” the President added.
The additional capital will strengthen the EBRD, enabling it to continue providing a sustained level of annual investment in Ukraine of around €1.5 billion during wartime, supported entirely by its own balance sheet, and to have the means to increase its support up to €3 billion annually once reconstruction begins.
The increase will also ensure that the Bank is strong enough to continue fully supporting the other economies where it invests in tackling their transition challenges.
Shareholders will be entitled to subscribe to the additional shares in accordance with Article 5.3 of the Agreement Establishing the EBRD. The first subscriptions are expected to be received in early 2024, with payments starting from early 2025.