Bank of Cyprus collects €1bn through shares selling
A 1 billion euro ($1.34 billion) capital increase was held by Bank of Cyprus by selling shares, including investors such as the European Bank of Reconstruction and Development (EBRD) and US investor Wilbur Ross, the bank cited on Monday.
The bank said the private placement was priced at 0.24 euro per share and investors from Europe, North America and Russia placed binding bids.
Bank of Cyprus said it would now move to a second phase of the capital raising, offering existing shareholders up to 20 per cent of the amount of shares offered to investors in the private placement, and at the same price, in a process known as a clawback. The total capital raised, however, would still total 1 billion euros.
A third phase of the placement would be to offer 100 million euros in new shares to all shareholders, including those who had participated in the placement, Bank of Cyprus said.
The placement is expected to push Bank of Cyprus’s core tier 1 capital to 15.1 per cent from 10.6 per cent, the bank said.
The Cypriot lender was one of two domestic banks deeply affected by a March 2013 financial crisis, after which the Mediterranean island country received a 10 billion euro bailout from international lenders. The bank was forced to convert 47.5 per cent of clients’ uninsured deposits into equity in a process known as a bail-in.
Source: economictimes
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