August 7, 2014 / 10:56 AM / 3 years ago

Portugal BCP to repay 1.85 bln euros in state loans

LISBON, Aug 7 (Reuters) - Portugal’s largest listed bank Millennium bcp said on Thursday it had obtained the go-ahead from the Bank of Portugal to repay 1.85 billion euros ($2.47 billion) in pricey state loans and would proceed with the reimbursement.

BCP completed a 2.25 billion euro capital increase last month, aimed to raise enough cash to repay the bulk of state loans held in so-called contingent convertible bonds that carry high interest and weigh on earnings.

BCP on Thursday confirmed its earlier estimates that its fully implemented common equity Tier 1 ratio would stand at 9 percent after the repayment.

The bank took 3 billion euros of convertible bonds at the height of Portugal’s debt crisis in 2012. BCP shares were up 1 percent at 1049 GMT after recovering from sharp morning losses.

1 US dollar = 0.7476 euro Reporting by Andrei Khalip; Editing by Mark Potter

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