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Portugal's Millennium says no decision to raise capital
May 14, 2014 / 9:10 AM / 4 years ago

Portugal's Millennium says no decision to raise capital

LISBON, May 14 (Reuters) - Millennium bcp, Portugal’s largest private bank, has made no decision about a possible capital increase to pay back state funding to increase its capital ratios, a spokesman said on Wednesday.

Business daily Diario Economico reported on Wednesday that Millennium was considering a capital increase of more than 1.5 billion euros to accelerate the repayment to the state of its contingent convertible bonds, or CoCos.

Millennium has 3 billion euros of CoCos outstanding. Portugal’s banks drew on state funding under the country’s bailout.

“Millennium has an approved plan to repay CoCos through organic growth of its results,” a spokesman for the bank said. “No decision has been taken over any increase in capital.”

The newspaper reported that Banco Espirito Santo (BES) was also preparing a capital increase of up to 1 billion euros to pay off CoCos.

BES was not immediately available for comment.

Shares in Millennium were down 5.81 percent at 0.1912 euros per share and BES was off 4.51 percent to 1.165 euros.

Analysts have said that considering investor demand for assets in southern Europe, some banks may consider cash calls to raise capital.

Millennium’s chief executive said on May 7 that the bank has planned to repay 400 million euros of CoCos this year.

The head of BES said in February that if there was a need to raise capital, there was available cash in international markets.

Reporting by Sergio Goncalves; writing by Axel Bugge; editing by Jason Neely

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