Portuguese bank BCP increases capital to repay State-subscribed CoCos

26 June 2014

Portuguese bank Banco Comercial Português (BCP), whose biggest shareholder is Angolan state group Sonangol, with 19.44 percent, plans to carry out a capital increase of 2.25 billion euros via a public share subscription, the bank said.

In a statement filed with Portuguese stock market regulator CMVM, BCP said that the capital increase was reserved for current shareholders who acquire subscription rights to subscribe for 34.5 billion new ordinary shares. The bank added that the subscription price set was 0.065 euros per share.

BCP plans to “use the proceeds from the Rights Offering to repay State-subscribed hybrid capital instruments [CoCos or contingent capital or contingent convertible capital instruments] in the amount of €1,850 million, leaving €750 million outstanding,” which BCP “intends to reimburse no later than the beginning of 2016.”

The repayment will also allow the bank to “strengthen its capital ratios,” the statement said.

Deutsche Bank and J.P. Morgan will coordinate the operation, in which Goldman Sachs International, UBS Investment Bank, Credit Suisse, Mediobanca, BBVA, Banco Santander, Nomura and Société Générale Corporate & Investment Banking will also be involved. (macauhub/AO/PT)

MACAUHUB FRENCH