BES aims to raise ratios with €1.1bn rights issue

By Andrew Griffin
22 May 2014

Banco Espírito Santo last Friday announced a fully underwritten rights issue that will take the Portuguese bank’s core tier one capital to 9.6% in time for the European Central Bank’s asset quality review later in the summer.

BES will issue up to 1.607bn new ordinary shares at €0.65 each in the 0.4-for-1 rights issue, a 31% discount to the theoretical ex-rights price. As rumours of the potential deal leaked earlier last week, there was some sell-off in the stock with the shares falling from €1.243 ...

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