Monte Paschi Approves Last Ditch Capital Raising Measures

Ailing Italian bank Monte dei Paschi di Siena (BMPS.MI) on Thursday formally approved a last-ditch attempt to raise 5 billion euros (4.17 billion pounds) by year end through a new debt swap offer and a share issue.

The bank, which is expected to need state support, said in a statement the minimum price for the share sale – which has not been underwritten by a consortium of banks – had been set at 1 euro per share.

Sixty-five percent of the share sale will be reserved for institutional investors in Italy and abroad. The bank also said it will extend a debt swap offer to include a 1 billion-euro hybrid financial instrument known as Fresh 2008.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.