Successful completion of maib's share buyback programme

11 Sep, 2024

Maib announces the completion of the buyback programme

Maib announces its share buyback programme, which began on the 21 August 2024, has now successfully concluded.

Information about the buyback

The total value of the shares put forth by the shareholders for the purpose of the buyback was sufficient to fulfill the initial programme proposal. Therefore, maib shall buy 3,103,438 ordinary shares (2.99% of total shares) at the price of MDL 74.56 per share. This will amount to a capital return from maib of MDL 231 million.

Next steps

Following the completion of the offer maib will now go ahead with the purchase of the shares. Given the submissions, for the shareholders that submitted an offer, a pro rata of 5.85% will be used to the volume of shares. The contracts between maib and the sellers will be signed no later than 1 October (within 15 days, as per Moldovan legislation). The payment will be done within 3 working days of the transactions.

Purpose of the buyback

The purpose of the buyback is twofold. Firstly, the Bank acquires its own shares to fulfill its obligations under its Long-Term Incentive Plan (LTIP). This plan is designed to align the interests of maib executives and employees with those of shareholders by offering compensation tied to the Bank’s long-term performance. It benefits shareholders by motivating leadership to focus on sustainable growth and profitability, leading to enhanced shareholder value over time. The LTIP includes up to 100 of maib’s top and middle managers. Secondly, the buyback creates a liquidity event to enable maib shareholders to realize the value of their shares.

Maib’s track record of capital return

Maib is fully committed to delivering value to its shareholders. In 2024, maib made the largest ever capital return of any bank in Moldova, totaling at just under MDL 1 billion, which consisted of a MDL 757 million dividend and a MDL 231 million buyback programme (covering the profits for 2021-2023), representing 38% payout ratio. Furthermore, at the latest AGM in June 2024, shareholders voted on a dividend policy of between 30% and 50%.

Macar Stoianov, maib CFO, commented:

“We are pleased to announce the successful completion of maib’s first share buyback programme. This initiative supports our long-term strategy by securing shares to fulfill our obligations under the Long-Term Incentive Plan (LTIP), while providing our shareholders with a valuable liquidity event. The buyback cements maib’s track record of capital return by bringing the total capital distribution to 38% of net profits for 2021-2023 (dividends and buyback). As Moldova’s leading bank, we remain focused on creating sustainable value for our shareholders.”

For further information please contact:

Oxana Cinpoeş
Phone: +37322303396
E-mail: oxana.cinpoes@maib.md

Valeria Kuznetova
Phone: +37322303397
E-mail: valeria.kuznetova@maib.md

About maib

Maib is the largest bank in Moldova, with a share of 36.1% of deposits and 38.0% of loans of the entire banking system at the end of 2Q 2024. Maib is a disciplined lender with NPL ratio of 1.9% and is well capitalised with CAR of 22.2% as of 30 June 2024. The Bank is of systemic importance to the country, it serves almost a third of the population and is one of the largest private employers in Moldova, with a workforce of over 2,400 people. Since 2018, maib's largest shareholder is a consortium, which includes the European Bank for Reconstruction and Development (EBRD), Invalda INVL, a leading asset management group in the Baltic States, and Horizon Capital, a private investment fund focused on emerging markets.

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