May 13, 2014 / 5:12 PM / in 4 years

Veneto Banca sets price for capital increase

MILAN, May 13 (Reuters) - Unlisted Italian bank Veneto Banca said on Tuesday it would issue shares in a planned capital increase for up to 490 million euros ($671.6 million) at 36 euros each.

The bank said in a statement the shares were priced at an 8.86 percent discount to the 39.5 euros that shareholders had set in April.

Each year the bank’s board recommends a per share value to shareholders, based on a number of factors including past and expected profitability.

Veneto Banca is one of 15 Italian lenders under review by the European Central Bank in a check-up of banking assets across the euro zone this year.

The bank is set to 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.

The bank also said it had successfully placed a five-year 500 million euro bond on Tuesday in less than three hours. ($1 = 0.7296 Euros) (Reporting by Stephen Jewkes. Editing by Jane Merriman)

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