-Portugal's BES Bank seeks to strengthen capital.
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)|
|Date:||Oct 20, 2011|
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