Monte dei Paschi May Seek a Debt-for-Equity Swap
September 26 2016 - 2:30PM
Dow Jones News
MILAN—Troubled Italian lender Banca Monte dei Paschi di Siena
SpA said Monday it is considering asking its bondholders to
voluntarily convert their securities into shares.
The bank, which is in the midst of a €5 billion ($5.6 billion)
recapitalization unveiled in July, said it hasn't decided whether
it will do it or how.
At the end of July, the bank said it planned to sell €28 billion
in gross nonperforming loans and raise €5 billion to solve once and
for all its soured-loan problem, which has been a major drag on its
earnings in recent years.
On Monday, the bank said it affirmed the objectives of the plan,
but that it is considering asking bondholders to convert their
bonds into equity after some "preliminary indications" it received
from institutional investors.
Write to Giovanni Legorano at giovanni.legorano@wsj.com
(END) Dow Jones Newswires
September 26, 2016 14:15 ET (18:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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