LISBON: Portuguese state banking group Caixa Geral de Depósitos (CGD) said that the Government had signed off an authorization for a capital increase at the bank of €2.5 billion.
The bank said in a statement to the market regulator that “by unanimous decision in writing on 17 March 2017, the single shareholder of CGD (the Portuguese State) decided to move ahead with an increase in CGD’s capital to the amount of €2,500,000,000, by issuing 500,000,000 new ordinary shares with a nominal value of €5 each.”
The capital increase will be subscribed by the Portuguese State on the date of settlement of the additional tier 1 shares to the amount of €500,000.
In another statement, CGD said that following a recent agreement from the European Commission to move ahead with the second stage of the recapitalization plan “next week there will be a number of presentations (road show) to institutional investors, in Lisbon, London and Paris”.
The president of Portugal meanwhile said that he was convinced that state-owned bank Caixa Geral de Depósitos would keep branches in all counties in the country and said this was of concern to the government.
“I am convinced they will come to a solution that cuts back on the size of the bank, but that still ensures there are branches in every county”, Marcelo Rebelo de Sousa said at the end of a visit to an exhibition.
