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Pop Milano cash call won't be delayed by governance rejection
April 16, 2014 / 6:02 PM / 3 years ago

Pop Milano cash call won't be delayed by governance rejection

MILAN, April 16 (Reuters) - Banca Popolare di Milano said on Wednesday the recent rejection by shareholders of corporate governance reforms would not delay its plans for a capital increase of 500 million euros ($690.32 million).

On Saturday the bank’s shareholders unexpectedly voted down reforms designed to attract new investors three weeks before the Italian cooperative bank launches a cash call.

In a statement the bank said the improved liquidity position at the bank would allow it to proceed with a further pay-back of crisis loans to the European Central Bank to the tune of 750 million euros by the end of April. It said the aim was to repay all the crisis loans by the end of 2014.

The ECB lent banks more than one trillion euros in three-year loans (LTRO) during the euro zone’s debt crisis, in December 2011 and February 2012, to help lenders ride out funding constraints. ($1 = 0.7243 Euros) (Reporting by Stephen Jewkes, editing by Naomi O‘Leary)

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