Monte dei Paschi considers subordinated debt issue to win ECB nod on bad loans: report
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 RossiMILAN (Reuters) - Italy’s Monte dei Paschi di Siena (BMPS.MI) 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.
The troubled bank in June approved a plan to offload around 8.1 billion euros ($9.6 billion) 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.However, to allow the deal, the European Central Bank has told Monte dei Paschi di Siena it has to strengthen its capital base by around 700 million euros, two sources close to the matter have said.
The report said the bank has already had informal contacts with the ECB for a preliminary green light on the 200-300 million euro bond issue.Monte dei Paschi declined to comment.The bond issue, which is expected in September or October, could tap a public guarantee scheme or be partly covered by Italy’s Treasury, the paper said.
Rome, which currently controls Monte dei Paschi with a 68% stake, has set aside up to 1.5 billion euros to buy into possible capital increases at state-controlled companies, according to a draft of a new stimulus package to help recovery after the coronavirus crisis.
Reporting by Giulio Piovaccari, editing by Emelia Sithole-Matarise Read more: Reuters Top News »
Trump's ABC town hall: President faces tough questions on coronavirus response, health care, racial injustice
President Donald Trump took questions from uncommitted voters in Philadelphia in a 90-minute town hall special hosted by ABC News.
Progressive woman wins primary, ousting Democratic family that held seat for 50 years in St. LouisCori Bush wins the primary, ousting the Democratic family that held the seat for 50 years in St. Louis. Bush will be the first Black woman to represent Missouri in Congress in the state's history and had significant backing from the Justice Democrats. Now disarm all of st. Louis. Oh so she has already won in November. Fake off abc. Please cancel yourself
J.C. Penney lenders seek higher bids for bankrupt retailer, report saysLenders say bids for Penney's real estate and assets aren't close enough to the $2.2 billion of debt they hold after the department store filed for bankruptcy. Let them die, already. It’s over.
Commerzbank profit slumps 21% as loan loss provisions spike, but beats expectationsCommerzbank on Wednesday reported a 21% fall in second-quarter net profit to 220 million euros ($259.7 million) on the back of a sharp increase in loan loss provisions. Great Recession but better than expected Why The DOW Jones keep going Up, Do Russia, or Saidy Arabian and Trump with The Help of Mnuchin using US Tax Money to buying Bad and Bogus Stocks to make it going up? 'beats' hahahahaha you permabull charlatans are a disgrace jobs destroyed, earnings trashed, PE multiples in the stratosphere but let's look through all that as it's a 'beat'
Netflix's Signature Sound Was Nearly a Goat's BleatOscar-winning sound designer Lon Bender also considered using underwater bubbles as the sound that introduces every stream; the end result is now referred to internally as 'Ta Dum.' This feels on brand for jpbrammer Odd how much my love of Dragon Prince is based on Bait and his little grumbles including the one he does that's an imitation of the Netflix sound
Meghan Markle Wins Bid to Protect Anonymous Friends in Tabloid Court CaseMeghan Markle has won the right to protect the identity of five friends who were close to being revealed to the public in her ongoing court case against Associated Newspapers. The perfect birthday present for the Duchess of Sussex.💖 🎵🎵🎵
Meghan Markle wins bid to prevent five friends from being named in High Court legal caseThe ruling was made by Justice Warby at the High Court in London on Wednesday Wow the Queen’s judge finally did the right thing and now the Queen’s Judge need to wrap this thing up and stop allowing the Queens racist tabloid media and RR and UK media to stop harassing Meghan Why is it for now😡The Queen’s Judge need to leave these people out of it they are not on trail. I cannot stand the racist British RF and W&K that is the worst worthless racist family on the planet and they are con artists 😡😡😡