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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.

Read original article on FT.com

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