MILAN, June 12 Italian bank Carige will sell new shares at a 40 percent discount to the theoretical price of the stock when excluding subscription rights, it said on Thursday, detailing the terms of its 800 million euro ($1.1 billion) cash call.
The bank needs to raise cash from investors to bolster its best-quality capital ratio, bringing it above a minimum 8 percent threshold set by the European Central Bank in a review of lenders across the euro zone this year.
The Genoa-based bank said in a statement it would offer 93 new shares every 25 already held at a price of 0.10 euros e ach. The capital increase starts on June 16.
Carige's cash call comes as bigger rival Banca Monte dei Paschi di Siena is also seeking to raise 5 billion euros in a share sale that started this week.
Monte Paschi offered a 35.5 percent discount to the theoretical ex-rights price.
Carige's rights issue runs until July 4. A group of banks led by Mediobanca and including Citigroup, Credit Suisse, Deutsche Bank, UniCredit, Commerzbank and Nomura has committed to buy any unsold shares.
Nine Italian banks have launched or are about to launch cash calls for a total of around 11 billion euros in preparation for the pan-European health check of lenders. ($1 = 0.7345 Euros) (Reporting by Valentina Za, editing by Danilo Masoni)