January 18, 2019 / 3:25 PM / 7 months ago

Italy's Carige will size upcoming state-backed bond at over 1 billion euros: sources

FILE PHOTO: The Carige bank logo is seen in Rome, Italy, April 16, 2016. REUTERS/Stefano Rellandini/File Photo

MILAN (Reuters) - An upcoming state-backed bond by Italy’s troubled lender Banca Carige (CRGI.MI) is expected to top 1 billion euros ($1.14 billion), three sources familiar with the matter told Reuters.

Italy’s populist government has set up a 1.3 billion euro fund to support Carige’s bond issuance after the European Central Bank put the bank under temporary administration this month.

Carige could launch the state-backed bond as soon as next week, “with a short to medium term” maturity, once Italy’s Treasury has published a decree formally granting the guarantee, one of the sources told Reuters.

State guarantees will help the Genoa-based lender raise badly needed funds on the market, after it failed to raise new capital from investors in December. Carige can raise up to 3 billion euros using the state guarantees.

Banca Carige declined to comment.

Writing by Giulio Piovaccari

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below