ECB tells Monte dei Paschi to issue T2 by end of the year

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By David Freitas
28 Aug 2020

The European Central Bank has requested that Banca Monte dei Paschi di Siena raise at least €250m of tier two capital before the end of this year, as part of the conditions of its sale of non-performing loans to Amco. Analysts say the bank might have to pay as much as a 9% coupon on the bond.

Monte dei Paschi confirmed the conditions requested by the ECB in a statement on Thursday.

The central bank has asked Monte to complete the €250m bond sale by the end of 2020, to confirm that the issuer has access to the market and is adequately capitalised.

Tier two is a ...

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