The bank will issue 500,625 fresh shares at EUR 79.90 apiece, to increase the number of shares from 300,887 to 801,512. The bank's share capital will increase from EUR 17.6m to EUR 46.8m.

Raiffeisen Banka successfully passed recent EU-mandated stress tests together with four other banks, but under the worst-case scenario the bank could fall EUR 113m short of capital.

The government and the central bank have given all five banks six months to secure fresh capital from private investors.

Responding to the stress test results, Raiffeisen officials said the recapitalisation endorsed today had been planned well considering the results of stress test.

The Maribor-based bank is scaling down its operations as part of restructuring.