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.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam