Banco Popolare announced this morning that it intends buy back their securities from investors who have Tier 1 and Tier 2 bonds in their portfolios. The operation aims at a maximum figure of four billion nominal and will close on February 15th, five days before the settlement. Authorization from the Bank of Italy is expected shortly.
In detail, 12 securities were issued, for a total amount of 4.007 million euro. Purchase prices are on average around 70-80%, with a minimum of 43% and a maximum of 91%.
Banco Popolare underlines in a note that "future decisions regarding the exercise of the option to redeem early, on the respective early redemption dates, the securities of each of the issues concerned which should not be purchased under this invitation, will be taken purely on consideration of the economic convenience for Banco Popolare, of the regulations in force at the time as well as on the basis of prevailing market conditions".
This morning, just over an hour after the start of trading, the Banco Popolare stock gained more than two and a half points in Piazza Affari.
