The lender aims to complete the capital raise by early November. Credit: Martaposmuckel from Pixabay.

Italian bank Banca Monte Dei Paschi di Siena (MPS) could raise €2.5bn in stages, Reuters reported citing local newspaper La Repubblica.

The capital raising plan, which was announced in June this year, has become complex due to the political turmoil caused by the fall of Prime Minister Mario Draghi’s national unity government.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Italy’s treasury has committed to offering €1.6bn capital support and MPS could receive the funds by 12 November this year, the La Repubblica report said.

Later, the bank could get more “injections of private funds, perhaps from the longed-for buyer that the Treasury has been seeking for years”, the report added.

Notably, in mid-July, MPS chief Luigi Lovaglio said the bank would raise €2.5bn under an “all or nothing” condition but that seems to have changed according to the documents published on the lender’s website in mid-August.

The lender dropped the “all or nothing” condition for the capital raise ahead of the shareholders’ meeting to vote for the rights issue on 15 September.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Italian news outlet said that the change in conditions could be related to the bank’s plans to raise funds in stages or it could be aimed at mitigating risks for lenders in the underwriting consortium for the capital infusion, the report added.

MPS is confident that if market conditions remained favourable, it could complete the fundraising by October-end or early November, the documents showed.

Earlier this month, the bank reached a consensus with the workers union to cut 3,500 jobs as part of the recovery plan.