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-Portugal's BES Bank seeks to strengthen capital.

Global Banking News-October 20, 2011--Portugal's BES Bank seeks to strengthen capital(C)2011 ENPublishing -

Global Banking News - 20 October 2011

Portugal's Banco Espirito Santo SA (BES.LB) is planning to issue up to EUR3.5bn in government-backed guaranteed bonds, and raise up to EUR790.9m in a debt-equity swap to improve capital levels.

Under Portugal's bailout plan, banks are planning to raise their capital ratios and cut loan-to-deposit ratios over the next two years. Under the plan, the banks have EUR12bn available for recapitalisation efforts, and a EUR35bn plan that allows them to issue government-backed guaranteed bonds.

The debt-to-equity swap will help it lift its Core Tier-one ratio to the required 9 percent this year and 10 percent in 2012, BES said, adding that the bank will also seek shareholder approval to increase its share capital to EUR7.5bn from EUR5bn presently.

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Publication:Global Banking News (GBN)
Geographic Code:4EUPR
Date:Oct 20, 2011
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