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Portuguese Banks Issue State-Backed Bonds

Portugal’s lenders are seeking to issue securities backed by the state.

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 FinancialTimes. 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.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Financial Times.

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