November 17, 2017 / 7:34 PM / a year ago

Carige set to sign share issue underwriting accord Friday or over weekend - source

MILAN, Nov 17 (Reuters) - Italy’s Banca Carige is set to sign an underwriting accord with banks for its share issue on Friday or over the weekend, a source close to the matter said, paving the way for the launch of a capital raise needed to safeguard its future.

Carige, saddled with a heavy burden of bad loans and accumulated losses, needs the 560 million euro ($661 million) share issue to prevent it being wound down.

The source said only some technical details needed to be ironed out, but all conditions for the underwriting accord were met. Carige should launch the share issue around the middle of next week, the person added.

“The underwriting contract will be finalised this weekend, maybe already tonight,” the person said.

Carige had hoped to finalise underwriting for the rights issue on Wednesday but last-minute difficulties meant Credit Suisse, Deutsche Bank and Barclays did not commit to take on any unsold shares.

The person added that Carige was set to enter exclusive talks over the planned sale of its bad loan portfolio and its consumer credit unit before the launch of the cash call. (Reporting by Andrea Mandala and Valentina Za, writing by Agnieszka Flak)

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