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Italy's Banca Carige secures investor backing for vital cash call

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Italy's Banca Carige secures investor backing for vital cash call

Banca Carige SpA's €500 million cash call was 66% subscribed by shareholders, leaving the bank to rely on agreements with other investors to make up the difference, Reuters reported, citing the bank.

The capital increase was part of the Italian lender's agreement with the European Central Bank, which has demanded that it raise money and get rid of toxic assets by year-end to avoid being wound down.

Carige raised €331 million from shareholders and €46 million from bondholders affected by a mandatory debt conversion, according to the report. It had also reserved a separate new share offer to such bondholders of up to €60 million.

In order to meet the €500 million minimum that it needs, it will turn to accords it has in place with certain investors, which, according to "two sources close to the matter," amount to €120 million.

This will bring the total raised on the market to €497 million, according to the report.