Andelsbanken NewB wants to refuel 40 million euros

Andelsbanken NewB is once again looking for fresh capital. The bank is to fill up 40 million euros in additional capital and is looking at institutional investors for this.

The amount of 40 million, set in consultation with the regulator, should allow NewB to provide credit for, for example, energy renovations and investments. The cooperative bank will have a break-even in 2026, the bank’s top announced on Tuesday after the annual meeting next month.

It took a long time for NewB to get a banking license. The plans will start in 2011, to first receive a banking license from the National Bank in early 2020. Previously, the company focused on financing private but also civil society organizations and institutional investors.

The Banking Supervision Authority has now determined that NewB needs additional funds. ‘We are looking for a capital increase of 40 million euros this year. The amount that we have set together with the regulator will cover our needs for the next four years ‘, says CEO Thierry Smets.’ The money is to be used, for example, for lending or developing new systems, he explains. The money is needed for a “break-even scenario in 2026”, after another two to three years of losses.

There are no formal commitments yet, but Smets is confident of reaching the amount, it sounds. For example, there have already been discussions with institutional investors, and the feedback has been good. ‘It means we are no longer going to private’, it reads.

Negative advice

NewB adds that the auditor in the annual report, which will be published shortly, has again given negative advice on the company’s continued operations due to the current deficits. The advice is negative because there are no formal commitments about the capital increase yet, it reads. »The Board of Directors itself has given positive advice on continuity on the basis of the information from the discussions with potential investors. That is why we have full confidence in it ‘, says Smets.

Commercial Director Katrien Beuckelaers adds that talks are being held with both existing and new institutional investors. The French insurance group Monceau, several French-speaking universities and finance & invest.brussels from the Brussels government are among the group of 11 institutional investors that NewB currently has.

Additional products

According to Smets, the extra funds for the bank’s basic task must be: ‘to make the saver’s money available for the local and social economy and the energy transition’. In addition to the existing banking offer for private individuals, NewB also wants to roll out an offer to companies in the coming weeks or months. There are also plans to launch additional products for the energy transition this year, such as new formulas for realizing green investments.

Last year, NewB really took off for private individuals, with debit cards and so on. “It’s a crucial moment,” said President Bernard Bayot. “We are fully operational for individuals and companies will follow in the coming weeks and months. We will finally be able to realize our promise to stimulate the local economy. Now more than ever there is a need for a player like NewB.” He also thinks of the energy crisis with the sky-high prices of gas and electricity. ‘A major social problem that we will be confronted with in the coming months and years. NewB wants to offer concrete solutions to that.’

Last year, as expected in the bank’s financial plan, NewB made a deficit of 9 million euros. It was not an easy year with covid. We are a start-up company and it has not been obvious in such an environment. But we did it anyway. The basic offer for private individuals is there, the customers come in and we grow ‘, Katrien Beuckelaers concludes.

The amount of 40 million, set in consultation with the regulator, should allow NewB to provide credit for, for example, energy renovations and investments. The cooperative bank will have a break-even in 2026, the bank’s top announced on Tuesday after the annual meeting next month. NewB took a long time to get a banking license. The plans will start in 2011, to first receive a banking license from the National Bank in early 2020. Previously, the company focused on financing private but also civil society organizations and institutional investors. The Banking Supervision Authority has now determined that NewB needs additional funds. ‘We are looking for a capital increase of 40 million euros this year. The amount that we have set together with the regulator will cover our needs for the next four years ‘, says CEO Thierry Smets.’ The money is to be used, for example, for lending or developing new systems, he explains. The money is needed for a “break-even scenario in 2026”, after another two to three years of losses. There are no formal commitments yet, but Smets is confident of reaching the amount, it sounds. For example, there have already been discussions with institutional investors, and the feedback has been good. ‘This means that we no longer go private,’ it reads. NewB adds that the auditor in the annual report, which will be published shortly, has again given negative advice on the continuity of the company due to the continued losses. The advice is negative because there are no formal commitments about the capital increase yet, it reads. »The Board of Directors itself has given positive advice on continuity on the basis of the information from the discussions with potential investors. That is why we have great confidence in it ‘, says Smets. Commercial director Katrien Beuckelaers adds that talks are being held with both existing and new institutional investors. The French insurance group Monceau, several French-speaking universities and finance & invest.brussels from the Brussels government are among the group of 11 institutional investors that NewB currently has. According to Smets, the extra funds for the bank’s basic task must be: ‘to make the saver’s money available for the local and social economy and the energy transition’. In addition to the existing banking offer for private individuals, NewB also wants to roll out an offer to companies in the coming weeks or months. There are also plans to launch additional products for the energy transition this year, such as new formulas for realizing green investments. Last year, NewB got off to a serious start for private individuals, with payment cards and the like. “It’s a crucial moment,” said President Bernard Bayot. “We are fully operational for individuals and companies will follow in the coming weeks and months. We will finally be able to realize our promise to stimulate the local economy. Now more than ever there is a need for a player like NewB.” He also thinks of the energy crisis with the sky-high prices of gas and electricity. ‘A major social problem that we will be confronted with in the coming months and years. NewB wants to offer concrete solutions to that.’ Last year, as expected in the bank’s financial plan, NewB ran a deficit of 9 million euros. It was not an easy year with covid. We are a start-up company and it has not been obvious in such an environment. But we did it anyway. The basic offer for private individuals is there, the customers come in and we grow ‘, Katrien Beuckelaers concludes.

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