Monte dei Paschi could raise the necessary funds in stages, reports La Repubblica

A view of the logo of Monte dei Paschi di Siena (MPS), the world’s oldest bank, which faces massive layoffs in a planned corporate merger, in Siena, Italy, August 11, 2021. Photo taken August 11, 2021. REUTERS/Jennifer Lorenzini

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MILAN, Aug 21 (Reuters) – Italy’s Monte dei Paschi di Siena (BMPS.MI) could raise 2.5 billion euros ($2.5 billion) in stages, Italian daily La Repubblica reported on Sunday. capital in mid-November.

The collapse of Prime Minister Mario Draghi’s government of national unity in July, which propelled Italy to elections on September 25, has complicated the fundraising plan for the world’s oldest bank.

According to La Repubblica, the bank could obtain 1.6 billion euros already committed by the Italian Treasury by November 12.

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Later, he could secure “additional injections of private funds, perhaps from the long-awaited buyer the Treasury has been seeking for years,” according to the newspaper. Monte dei Paschi was unavailable for comment.

In mid-July, the CEO of Monte dei Paschi publicly announced that the bank would raise the 2.5 billion euros via a capital increase to be carried out under an “all or nothing” condition.

But in documents posted on the bank’s website in mid-August ahead of a Sept. 15 shareholder meeting to approve the rights issue, MPS dropped the “all or nothing” condition for the cash call.

Repubblica said this change could be related to MPS’s intention to carry out the cash call in stages, or could be aimed at reducing risks for the banks in the underwriting consortium for the capital increase.

In the same documents, the bank said it was confident of carrying out the planned cash call between the end of October and the beginning of November, “if market conditions allow it”.

The bank said it could add more investment banks to the group of eight lenders already lined up for the cash call, and added it could sign deals with lead investors and “other investors”. to secure part of the rights issue.

A source with knowledge of the matter told Reuters in late July that the Treasury was determined to complete the bank’s fundraising despite the political chaos. Read more

($1 = 0.9966 euros)

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Reporting by Francesca Landini; Editing by David Evans and Jan Harvey

Our standards: The Thomson Reuters Trust Principles.

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