Italian mutual bank, UBI Banca, is planning to increase its capital by about €1 billion, The Wall Street Journal reports. As a result of the capital increase, the bank’s core Tier-1 capital ratio will rise to 8.01% from 6.95% as of December 2010.
As per the capital-increase plan, the bank will also pay a dividend of 15 European cents per share on its results, down from 30 cents paid in 2009. Mediobanca is the sole global coordinator and bookrunner of the capital increase.
Click here for the story from The Wall Street Journal.
Click here for the additional coverage from Reuters.