Banco Comercial to Raise 1.3 Billion Euros in Rights Offering
Portuguese lender plans to repay 700 million euros of CoCos
Fosun may increase its holding in the bank to 30 percent
By Anabela Reis
(Bloomberg) --
Banco Comercial Portugues SA, Portugal’s biggest publicly traded lender by assets, plans to sell about 1.3 billion euros ($1.4 billion) in new stock to repay contingent convertible bonds subscribed by the government and strengthen its balance sheet.
The subscription price was set at 9.4 euro cents a share, the bank said in a statement on Monday. Banco Comercial stock fell 1.3 percent in Lisbon to close at 1.0412 euros before the announcement, giving the lender a market value of 820 million euros.
The bank plans to repay the remaining 700 million euros in CoCos that were part of a state aid package in 2012. It repaid 50 million euros of CoCos on Dec. 30. Banco Comercial Chief Executive Officer Nuno Amado reiterated in November that the plan was to repay all CoCos before the June 2017 deadline.
Fosun International Ltd, the lender’s biggest shareholder, placed “an irrevocable anticipated subscription order” that may allow it to increase its holding to 30 percent after the rights offering, according to the statement. The Chinese conglomerate agreed in November to buy 16.67 percent of the Portuguese bank and said at the time it aimed to increase the stake to 30 percent in the future.
Banco Comercial said on Monday it has no information on whether Angolan oil company Sonangol, its second biggest shareholder, plans to buy or sell subscription rights to the offering. Sonangol also has permission from the European Central Bank to increase its stake in Banco Comercial to 30 percent.
Banco Comercial’s common equity Tier 1 ratio, considering fully implemented rules, would stand at 11.4 percent as of Sept. 30 if the rights offering and repayment of CoCos are taken into account, the bank said.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are joint global coordinators and joint bookrunners. Credit Suisse Group AG, Mediobanca SpA and Bank of America Merrill Lynch are also joint bookrunners.
15 azioni nuove a 0.094 per 1 vecchia che ha chuiso oggi a 1.0412
terp 0.1532