July 22, 2014 / 4:06 PM / 3 years ago

Portugal's Millennium bcp raises 2.25 bln euros in capital hike

2 Min Read

LISBON, July 22 (Reuters) - Portugal's second-largest listed bank, Millennium bcp, raised 2.25 billion euros in capital from existing shareholders, despite concerns about its rival BES that weighed on the country's banking sector shares in recent weeks.

Millennium, which plans to use most of the proceeds to repay pricey state loans, said in a statement on Tuesday evening that it sold 98.8 percent of all the shares in the subscription period, and the rest through subsequent demand.

"The total demand registered in this capital increase accounted for approximately 125.6 percent of the amount of the rights offering," the bank said, noting that subsequent demand far outstripped the rights not taken up by shareholders.

Shares in Millennium - which is the second-largest bank by assets in Portugal after Banco Espirito Santo (BES) and the largest by market value - have dropped 12 percent since the rights to subscribe to the discounted shares started to trade on July 4 as concerns over BES hit other Portuguese banks.

Reporting By Andrei Khalip; Editing by Laura Noonan

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