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