Portugal BCP launches capital increase of up to 2.25 bln euros

LISBON, June 24 Tue Jun 24, 2014 4:39pm EDT

Related Topics

LISBON, June 24 (Reuters) - Portugal's second-largest listed bank Millennium bcp said on Tuesday it will carry out a capital increase of up to 2.25 billion euros and use most of the proceeds to repay pricey state loans, as well as reinforce its solvency ratios.

It said it will offer its shares at a subscription price of 0.065 euros per share, which represents a discount of 34 percent from the theoretical ex-rights price based on Tuesday's closing price of 0.1585 euros.

BCP is offering subscription rights for nearly 34.49 million new ordinary shares and the subscription price was set at a ratio of 7 new ordinary shares for 4 ordinary shares held.

The offer comes on the coattails of a successful, but smaller capital hike by Portugal's largest listed bank Banco Espirito Santo that raised 1 billion euros. This month's operation drew strong demand even after the prospectus revealed irregularities at a holding company with a key stake in BES. (Reporting By Andrei Khalip)

FILED UNDER: