Banif Jumps as State Agrees to Inject $1.5 Billion: Lisbon Mover
The stock climbed 7.5 percent to close at 15.7 cents in Lisbon, giving Funchal, Madeira-based Banif a market value of 89.5 million euros. The new shares started trading on Dec. 24 after a merger of the holding company Banif SGPS into Banif was completed.
The Portuguese state will take part in Banif’s recapitalization plan by subscribing 700 million euros of special stock and 400 million euros of capital instruments that will be issued by the bank by the end of January, the finance ministry said on Dec. 31. The move will help bolster Banif’s core Tier 1 capital ratio to more than 10 percent, it said.
“The state’s decision to become a shareholder of Banif is positive for the bank’s capital ratios and solvency levels,” said Jose Novo, a trader at Orey iTrade in Lisbon.
Banif will also carry out a 450 million-euro capital increase that will be subscribed by private investors, according to the finance ministry.
To contact the reporter on this story: Henrique Almeida in Lisbon at email@example.com
To contact the editor responsible for this story: Jerrold Colten at firstname.lastname@example.org