Airport's stock capital boosted

TALLINN (BNS) - To increase the credibility of Tallinna Lennujaama airport with banks, the Estonian state intends to increase its stock capital by 25.88 million kroons ($1.81 million) at the expense of profit and agio.

Transport Ministry's spokesperson Aap Tanav said extension of the stock capital would be done by means of a stock issue of up to 258,840 shares of inscribed stock at 100 kroons par value each.

To cover 10 million kroons of the extension, the state will make a payment at the expense of Tallinn airport's profit for 1999 of 24.2 million kroons.

Extension of the stock capital by 15.88 million kroons will be at the expense of agio, Tanav said.

The stock issue will raise Tallinn airport's stock capital to 128.71 million kroons.

At present the stock capital of the fully state-owned airport is 102.83 million kroons.

Tanav motivated the stock capital extension by the need to increase Tallinn airport's credibility with banks.

Tanav said that as of the end of last year, Tallinn Lennujaama airport had 196.9 million kroons of long-term obligations.