The lender announced the successful private placement 4.166.666.667 new ordinary shares at a price per share of €0.24, with total gross proceeds of €1 billion, completing the first phase of its capital raise.

The capital increase of €1 billion, combined with deleveraging actions completed after the first quarter of 2014, is expected to strengthen the Bank’s Common Equity Tier 1 ratio to 15.1% from 10.6% in the first quarter of 2014.

The shares have been suspended since March 2013, after which the bank converted large deposits into stock to recapitalise as well as taking on some assets from defunct Laiki Bank. Both institutions were wrecked by lending to Greece.

The suspension would give Bank of Cyprus time to complete its capital raise, CSEC said in an announcement.

Source: Famagusta Gazette