Italian retail bank, Banca Monte dei Paschi di Siena, is planning to increase its capital ratios by raising about €2.47 billion, The Wall Street Journal reports. The bank will offer shareholders a rights issue of up to €2 billion to repay state crisis loans totaling about €1.9 billion, adds Reuters. Monte Paschi will also offer another rights issue of about €471 million to repurchase hybrid debt convertible into Monte Paschi shares issued in 2003. The capital increase will allow the bank to boost its core Tier 1 capital ratio by 0.16-0.18%, enabling it to satisfy stricter requirements under Basel III rules.
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