Generali and Intesa Sanpaolo SpA have reportedly taken up Banca Carige SpA's debt swap offer, which is part of the latter's efforts to strengthen its capital, Reuters reported, citing "sources close to the matter."
Together, the two companies are estimated to hold approximately €100 million worth of junior bonds issued by Banca Carige, according to the Oct. 10 report.
The struggling Genoa-based bank recently launched a debt swap for bonds worth €510 million, which comprises a single Tier 1 bond worth €160 million and three Tier 2 bonds worth €100 million, €50 million and €200 million, respectively.
Banca Carige offered to convert the Tier 1 bond at 30% of its nominal value and the Tier 2 bonds at 70%. Investors have until Oct. 11 to accept the offer and receive a five-year senior bond in exchange, the newswire noted.
The lender previously warned that there was no certainty that the capital-raising plan would succeed and that European regulators could adopt bank resolution measures if it failed.