Print Edition - 2019-01-12 | MONEY
Italian bank Popolare di Bari to seek $577 million from investors
Jan 12, 2019-
Italy’s Popolare di Bari will try to raise up to 500 million euros ($577 million) from investors to shore up its balance sheet, a source familiar with its thinking said. The latest move by the unlisted cooperative bank, which competes with several local rivals in the poorer south-eastern Apulia region, comes after it identified a “significant and objective difficulty” in tapping markets in 2017. A failure to raise private capital prompted the European Central Bank last week to place bigger rival Carige under special administration and forced the Rome government to pledge up to 1.3 billion euros in support funds. Like other Italian banks, Popolare di Bari has been working to shed bad debt that it built up during a harsh recession, but soured loans were still estimated to account for roughly a fifth of its total lending in November. Loss-making Popolare di Bari is now planning a new share issue for up to 300 million euros and the placement of 200 million euros in subordinated debt, the source told Reuters on Thursday.
Published: 12-01-2019 10:50