May 15, 2014 / 5:37 PM / in 4 years

Portugal's BES says to raise up to 1.045 bln euros in capital

LISBON, May 15 (Reuters) - 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 billion euros.

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 markets.

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

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