(Adds capital ratios)
LISBON May 27 Portugal's second-largest listed
bank Millennium bcp said on Tuesday it had repaid the
state 400 million euros ($544.58 million) in loans held in
contingent convertible bonds (CoCos) that have weighed on the
bank's bottom line due to the high interest charged.
Portugal's banks took the loans during the country's debt
crisis and the financing was provided by the government as one
part of Lisbon's 78-billion-euro bailout by the European Union
and International Monetary Fund that ended this month.
BCP originally received 3 billion euros and this is the
first payment it has made, following other banks' suit.
It said that after this repayment, and considering the
positive effect of the sale of non-life insurance activities in
a joint venture to Belgium's Ageas for 122.5 million
euros, its core Tier 1 capital ratio would be 13.2 percent.
That is above the 10 percent minimum demanded by the Bank of
Portugal. Its common equity Tier 1 ratio would be 11.7 percent,
above the 7 percent requirement under the European criteria as
part of a transition to stricter new solvency rules for banks.
The bank, which has until 2017 to pay back the remaining
CoCos, did not say when it is likely to repay more loans.
($1 = 0.7345 Euros)
(Reporting By Andrei Khalip, editing by Axel Bugge and Louise