Portugal’s lenders are seeking to issue securities backed by the state, The Wall Street Journal reports. Banco Espirito Santo is planning to issue state-guaranteed three-year bonds worth up to €1.25 billion.
Millennium has already raised €1.37 billion for a capital increase required to meet targets set under the country’s €78 billion bail-out deal with the European Union and the International Monetary Fund (IMF), adds Financial Times. Under the terms of the EU-IMF bail-out, Portuguese lenders are required to have a core tier one capital ratio of 9% by the end of the year and 10% by the end of next year.
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