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

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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