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UPDATE 1-Bank of Cyprus says boosts cap on rights issue
March 20, 2012 / 4:27 PM / 5 years ago

UPDATE 1-Bank of Cyprus says boosts cap on rights issue

* Bank says ups its core tier 1 by 594 mln euros

* Response fell short of plan

* Bank says satisfied in face of adverse market conditions (Adds detail)

NICOSIA, March 20 (Reuters) - Cypriot lender Bank of Cyprus said on Tuesday it had bolstered its core tier 1 capital by over half a billion euros through a rights and a convertible securities exchange, though both fell short of expectations.

The bank is required to strengthen its capital base to meet tougher regulatory requirements by the end of June. The bank had posted a 2011 full-year net loss of 1 billion euros from the impact of a writedown on its Greek sovereign debt holdings.

Bank of Cyprus said it had raised 594 million euros, representing approximately 160 million euros in a rights issue and 434 million in a voluntary exchange of convertible securities. It said approximately 898.6 million new shares would be issued.

The bank's initial call was for up to 393 million in rights and 600 million euros worth of convertible securities.

"The bank is satisfied at the result, if one considers the adverse conditions prevailing on markets," said Group CEO Andreas Eliades. "To this I have to add that we are on track as far as our capital strengthening plan is concerned."

The bank said it would continue to take action to strengthen its capital position through profitability and other targeted actions, including the effective management of risk weighted assets. (Reporting By Michele Kambas; Editing by Helen Massy-Beresford)

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