BNP Paribas in €4.3bn capital-raising
BNP Paribas on Tuesday launched a €4.3bn ($6.3bn) cash call, becoming the latest bank to buy itself out of a government bail-out.
France’s biggest bank said it would use the funds to repay €5.1bn of non-voting stock issued to the French government this year in addition to a €226m interest payment.
The bank is offering 107.6m new shares at €40 each – a 30 per cent discount to Monday’s closing price of €56.57. The one-for-10 issue is fully underwritten.
Baudouin Prot, chief executive, said state support had been a big help but the bank no longer needed it. However, he pledged commitment to the government on traders’ pay and on maintaining loans to finance the economy.
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