Monte dei Paschi considers subordinated debt issue to win ECB nod on bad loans: report

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Italy's Monte dei Paschi di Siena could issue a Tier2 subordinated bond worth up to 300 million euros ($356 million) to boost capital as it works to win the ECB's approval for a planned spin-off of its bad loans portfolio, daily Il Sole 24 Ore said on Thursday.

FILE PHOTO: People are seen inside a Monte dei Paschi di Siena bank in Rome, Italy August 16, 2018. REUTERS/Max Rossi

The troubled bank in June approved a plan to offload around 8.1 billion euros in bad and unlikely-to-pay loans to state-owned bad loan manager AMCO, in a move that could make it more attractive for a possible re-privatisation.

 

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