BCP cancels last 2250 million of secured debt – TVI24

BCP cancels last 2250 million of secured debt – TVI24

The Millennium BCP canceled the last of 2,250 million euros of debt issued with the guarantee when the financial crisis closed the access of the Portuguese banking financing in international markets, the bank announced.

In a statement released this Wednesday on the Commission and Securities Market site, BCP states that repurchased and canceled 750 ME of Floating Rate Notes guaranteed by the state with maturity in December 2014 and EUR 1,500 million also this type of Floating Rate Notes expiring in February 2017.

After the outbreak of the financial crisis in 2011 and 2012, like other banks, BCP issued bonds guaranteed by the State since the Portuguese banking lost access to financing in international markets due to the financial crisis.

The bank grew to an amount of € 6,000 million in bonds with state emissions warranty. In 2013, total interest costs of such obligations amounted to EUR 60 million.

However, the scenario for the Portuguese banking sector has changed substantially, with most banks regained access to market financing and even reinforced the capital by themselves.

In July, BCP raised 2,250 million in “cash lime” with robust demand, unscathed by the turmoil around the Espírito Santo Group, having as an objective prepay face state aid that was used to strengthen its capital in 2012.

Recently, the BCP anticipated a refund of 1,850 million CoCos to the State, which added to an earlier tranche of 400 million that had paid.

The BCP only has a portfolio of EUR 750 million Cocos, which will be reimbursed by the beginning of 2016.

In mid-2012, the BCP used 3,000 million line redemption of Portugal to strengthen its capital and the initial plan, which had the backing of Brussels, was paying 400 ME of CoCos this year and only had to repay the remaining 2,600 ME in the second half of 2017.

However, BCP shareholders called to approve the membership of the new regime of deferred taxes, which will increase the ratio of capital CET1 nuns strong 286 basis points, on the eve of stress tests of the European Central Bank (ECB).

The General Meeting of shareholders is scheduled for October 15, ie before the ECB take an exam unprecedented health of the 131 largest banks in the euro zone in November.