AUSTRIA'S RAIFFEISENBANK BECOMES SHAREHOLDER IN RIJEKA SHIPYARD

ZAGREB, April 17 (Hina) - The Zagreb branch of Austria's Raiffeisenbank (RBA) on Monday became one of Rijeka-based "Viktor Lenac" shipyard's shareholders. The RBA entered and today paid for the purchase of 42,513 ordinary shares worth US$650,000, and 32,500 preference shares worth US$650,000. This was RBA's first appearance as a portfolio investor on Croatia's financial market, RBA head of administration Zdenko Adrovic said today. The ordinary shares were issued at the price of US$15,29 (123.68 kuna). The nominal value of the shipyard's shares is 100 kuna, while at the Zagreb Stock Exchange they are currently being traded for 90 kuna. Rijeka's "Viktor Lenac" is the only big shipyard in Croatia which has been completely privatised, and the only metal-working company whose shares have been included on the Zagreb Stock Exchange. In keeping with an agreement on investing and recapitalisation, signed a month ago, the RBA, besides directly investing in shares, has also become part of the Employee Stock Ownership Plan, an employee benefit plan which makes the employees of a company owners of stock in that company. Interested employees will be granted loans in the total amount of US$600,000. Agreements on investing in and the recapitalisation of "Viktor Lenac" were signed on March 14 by the International Finance Corporation, a Washington-based World Bank member, and the following financial institutions: Germany's Deutsche Investitions und Entwicklungsgesellschaft, N.V. Beleggingsmaatschappij Ella III from The Netherlands, and Austria's Raiffeisenbank's Zagreb branch. The entire value of the project, which also envisages the expansion and modernisation of "Viktor Lenac's" plants, is US$58,24 million. One part, US11,85 million, is intended for the recapitalisation of the company, which will raise its basic capital to 175 million kuna. (hina) ha jn