June 11 (Bloomberg) -- Cyprus Popular Bank Pcl, the eastern Mediterranean island’s second biggest lender, boosted core Tier 1 capital by 115 million euros ($144 million) through the buyback of securities.
Of 450 million euros of floating rate lower tier 2 securities maturing in 2016, 76 percent were tendered after the bank offered to repurchase them, the Nicosia-based lender said in an e-mailed statement today. The move is part of a capital enhancing plan submitted to the Cyprus Central Bank on Jan. 20.
Cyprus Popular is preparing a 1.8 billion-euro rights offer, fully underwritten by the Cypriot government. The lender said its core Tier 1 capital ratio, a measure of financial strength, will reach 9.2 percent once it completes the capital raising plan.
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