November 30, 2018 / 5:38 PM / a year ago

Italy's Carige lifts capital with 320-mln-euro bond

MILAN, Nov 30 (Reuters) - Italy’s Banca Carige said on Friday it had issued a 320 million euro ($362 million) subordinated bond as part of a rescue deal financed by the country’s healthy lenders.

Italian banks bought the bond, which pays a 13 percent yield, through the voluntary arm of a depositors’ guarantee fund financed by the industry.

The bond will be reimbursed early next year if an up to 400-million-euro share issue the bank is planning in 2019 is successful, otherwise it will convert into equity.

Carige could issue more the of the subordinated bond for up to another 80 million euros before launching the cash call. If requests exceed this amount, the portion of the bond underwritten by the bank fund can be reduced, the bank said in a statement.($1 = 0.8835 euros) (Reporting by Valentina Za, editing by Steve Scherer)

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