LISBON May 15 Banco Espirito Santo (BES)
, Portugal's second largest listed bank, said on
Thursday it will carry out a capital increase of up to 1.045
The CMVM market regulator told Reuters on Wednesday the bank
had submitted a plan for a capital increase.
Analysts have said Portugal's banks want to raise capital to
accelerate the repayment of contingent covertible bonds, or
CoCos, to the state. Such financing was extended to Portugal's
banks under the country's bailout.
The head of BES said in February that if there was a need to
raise capital, there was available cash in international
The prospect of a cash call weighed on BES' shares on
Thursday. The bank's stocks closed 5.54 percent lower at 1.058
euros a share before the announcement, extending a slide from
Wednesday when local media first reported the bank was
considering a capital increase.
(Reporting By Sergio Goncalves, writing by Axel Bugge)