trending Market Intelligence /marketintelligence/en/news-insights/trending/kic-TUIdVWaYAqz5z-vVnA2 content esgSubNav
In This List

Monte dei Paschi provides details of recapitalization effort


Latin American and Caribbean Market Considerations Blog Series: Focus on LGD


Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level


Financial Institutions Factor Transition Risk into Climate-Related Stress Testing

Monte dei Paschi provides details of recapitalization effort

Banca Monte dei Paschi di Siena SpA on Dec. 15 released the terms of its last-ditch attempt to raise capital from market sources, including the pricing of a planned share issuance.

Shares in the offering will be priced at a maximum of €24.90 apiece and a minimum of €1, with the deadline for completing the transaction set for Dec. 31. The bank had asked for an extension from the ECB but saw its request rejected.

Institutional investors will be able to take up 65% of the offering, with the remaining 35% aimed at the wider public. Of that latter allocation, 30% is reserved for existing shareholders.

Monte dei Paschi also extended its debt-for-equity offer — which is part of the €5 billion recapitalization plan — to "FRESH" convertible notes issued in 2008, which had initially been omitted due to "technical" issues. This means the aggregate outstanding balance of the offer increased to about €4.51 billion from approximately €4.29 billion.

Italian market regulator Consob is still considering the bank's request to open the debt-for-equity swap to retail holders of more than €2 billion in subordinated debt, the bank added. Consob would also need to approve the participation of retail investors in the capital increase.

Monte dei Paschi also pointed out that the debt-for-equity offer will be void unless the entire €5 billion recapitalization succeeds.