Banco Popolare to issue bond within month -report

MILAN, June 26 (Reuters) - Italy's Banco Popolare (BAPO.MI) will issue the 1.45 billion euro state-backed bonds it plans to strengthen its capital ratios within a month, Chief Executive Pierfrancesco Saviotti told an Italian newspaper on Friday.

On June 19 the Italian Treasury approved the subscription of the bonds for the bank.

"If they (the Treasury) use the end-month auctions we will issue the bond mid-July," Saviotti told business daily Il Sole 24 Ore, adding if the Treasury used the next mid-month auction, the issue would be at the beginning of August.

He said there was interest for the factoring division of Banca Italease, in which Banco Popolare holds about 30 percent.

He also said that the price of Banco Popolare's ongoing bid on Banca Italease shares, set at 1.5 euros per share, would not be changed.

Asked about asset management group Arca, controlled by a series of cooperative banks including Banco Popolare, Saviotti said talks for a sale were in an advanced phase. "We hope to reach a final decision by the end of July," he said. (Reporting by Stephen Jewkes; Editing by Hans Peters)