Banca Carige SpA's shareholders approved a €700 million capital increase through the issuance of new ordinary shares, as part of the Italian bank's €900 million rescue plan.
The new shares will be issued in four tranches, with the first to be issued for the voluntary intervention scheme of the Italian interbank deposit fund to reimburse credit stemming from subordinated Carige bonds held by the fund. The size will be equivalent the nominal amount of the said notes.
The second tranche will be reserved for Cassa Centrale Banca Credito Cooperativo Italiano SpA and any of its subsidiaries that may subscribe in full or only a part of it.
The third tranche, meanwhile, will reserved for Carige's shareholders and the fourth for the Italian interbank deposit fund. The lender will issue 21.25 billion warrants free of charge to shareholders who have subscribed to new shares at a ratio of 1 warrant for every 4 subscribed shares.
The lender said there will be a further divisible paid capital increase of up to €21.25 million plus any possible share premium for the warrant exercise via the issuance of 21.25 billion new ordinary shares in one or two tranches.
Carige's rescue plan also includes an issuance of €200 million of new subordinated bonds, as well as a full-scale disposal of €3.1 billion in nonperforming loans.
