Angolan Banco Económico is fully privatized and increases its capital by EUR 636 million

Angolan bank Banco Económico (formerly BESA) is now wholly owned by the Económico – Private Subscription Venture Capital Fund, composed of the largest depositors, and has increased its share capital by EUR 636 million, it was announced today.

In a press release issued today, Banco Económico (BE) announced that in a general meeting, it approved the financial statements for 2019, 2020, and 2021, restructured its shareholder base, and now owned by the Económico – Private Subscription Venture Capital Fund collective investment vehicle.

This entity is supervised by the Capital Markets Commission and includes only depositors who have voluntarily joined the recapitalization initiative.

As a result, the statement continued that BE has been fully privatized, with the only shareholder being a regulated entity, representing a greater alignment with current regulatory requirements.

According to Expansão newspaper, 40 depositors signed the agreement to use 65 percent of their deposits to recapitalize the bank, which was created after the bankruptcy of Banco Espírito Santo Angola (BESA) in 2014.

In addition to the capital increase, and as provided for in the measures of the Recapitalization and Restructuring Plan approved by the National Bank of Angola (BNA), the replacement of equity was carried out through the issuance of Perpetual Participation Bonds (TPP), this instrument is considered equivalent to Tier 1 capital.

The issuance of TPP and the increase in share capital for 121,196 million kwanzas (284 million euros) and 271,500 million kwanzas (636 million euros), respectively, have already been fully implemented, the bank’s press release states.

Additional recapitalization measures,” providing a total of 110,917 million kwanzas (EUR 260 million) in regulatory capital, are underway to enable the bank to have solvency ratios in line with regulatory requirements.

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