June 2, 2014 / 1:36 PM / 4 years ago

Portugal's Millennium says not planning cash call

LISBON, June 2 (Reuters) - Millennium bcp, Portugal’s second largest listed bank, it was not considering a cash call for the moment, its chief executive said on Monday.

“In the current situation, there is no such decision, nor is there any decision to change the current restructuring plan,” Chief Executive Nuno Amado told journalists when asked if the bank is considering a cash call.

Business daily Diario Economico recently reported that Millennium was considering a cash call of 1.5 billion euros to accelerate repayment of loans held in contingent convertible (CoCos) bonds that have weighed on the bank’s bottom line due to the high interest charged.

Millennium repaid 400 million euros in CoCos to the state earlier this month. The bank has a further 2.6 billion euros in CoCos, which it has to repay by the end of 2017.

Amado has previously said the bank wants to repay the CoCos as soon as possible.

Some analysts have said it could make financial sense for the bank to raise capital in order to repay the CoCos because of their high cost. Asked about that, Nuno said: “Does it make sense - it may or it may not, we will see.”

Millennium’s competitor Banco Espirito Santo has launched a rights issue of up to 1.045 billion euros. (Reporting By Sergio Goncalves, writing by Axel Bugge, editing by David Evans)

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