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)