Popolare bites Eu2bn bullet for Basel
Italy’s Banco Popolare secured a hard underwriting commitment from five banks for a Eu2bn capital increase likely to be launched early next year, the bank said on Sunday night. Investors reacted positively to the news, marking the shares down just close to 4% despite the near-doubling of the issuer’s share capital the deal will entail.
The capital raise is designed to let it repay Eu1.45bn of Italian government-injected core tier one capital and provide it with the flexibility to allow it to get the best price for assets it is selling amid the implementation of Basel III.
The issuer is treading what is fast
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