MILAN Unlisted Italian lender Veneto Banca will offer new shares at 39.5 euros each to raise 850 million euros ($1.1 billion) in fresh capital to strengthen its balance sheet under scrutiny by European regulators.
Veneto Banca is one of 15 Italian banks under review by the European Central Bank in a check-up of banking assets across the euro zone this year. Eight of them are planning to raise a total of more than 8 billion euros in capital from investors.
The bank has announced a 500 million euro rights issue and will convert a 350 million euro bond into equity to bring its highest quality Common Equity Tier 1 capital above a minimum threshold set by the ECB in the review.
In a statement on Tuesday, Veneto Banca said it targeted an attributable net profit of 222 million euros in 2016 with a return on tangible equity of 7.4 percent.
The bank posted a 96 million euro net loss last year after 459 million euros in writedowns.
Veneto Banca said in a document on its website its shares were worth 40.25 euros each in 2012, up from 39.5 euros in 2011.
The bank expects an operating income of 1.15 billion euros in 2016, compared with 1.1 billion euros in 2013.
($1 = 0.7249 Euros)
(Reporting by Valentina Za; Editing by Tom Heneghan)