Printer Friendly

-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 - http://www.enpublishing.co.uk

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.

[Editorial queries for this story should be sent to gbn@enpublishing.co.uk]

((Distributed via M2 Communications - http://www.m2.com))
COPYRIGHT 2011 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Global Banking News (GBN)
Geographic Code:4EUPR
Date:Oct 20, 2011
Words:168
Previous Article:-Prudential Mortgage Capital names head of lending division.
Next Article:-Brazil's Bradesco Bank revises credit expansion for 2011.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters