Here’s how the Mef will pass out for Mps
All the latest news from MPS including bonds issued, ECB stakes, the role of the Treasury Sga and MEF activism to find buyers at Monte dei Paschi di Siena
After the ECB clearance to sell sick loans for 8.1 billion to Amco (the Treasury's sga), yesterday MPS complied with one of the three conditions set by supervision , launching the subordinate of 300 million for institutional investors.
The issue "obtained an excellent response", with orders of over one billion from 120 subscribers, Monte dei Paschi di Siena (Mps) underlined in a note.
“After all, when do you find a 10-year public bank loan that pays 8.5% a year, in the world of negative rates?”, Remarked the newspaper Repubblica .
But the financial operations for the Treasury-controlled bank are not over.
The ECB request is, in practice, to restore the 1.1 billion of capital that the sale of credits will cause to Mps: with another "quasi-capital" bond (At1) of around 800 million, or at least with the commitment of three banks , by 1 December, to have it then signed.
"But the state boss, who by 2021 promised the EU to reprivatize the bank, aims to flesh out the capital with a merger", comments Repubblica today.
Today the Treasury holds the Siena shares at 6.9 euros (8.5 for the part relating to redemptions). Rocca Salimbeni closed yesterday at 1.42 euros). In fact, therefore, at the moment the virtual loss for the Treasury is around 80%, for a total value of about 5.5 billion, underlined Il Sole 24 Ore.
The Treasury is literally fainting for Mps: it currently has a large capital loss, the bank continues to lose, it still has to shore up it financially, even with the subscription of bonds, and in the meantime it goes with its hat in the hands of other banks – including the French Bnp and Crédit Agricole – to find the shareholding for the future of Mps given that according to the agreements with the European Commission, the Treasury must go down in the capital of Mps.
But the government takes more time to file the MPs decree. The regulatory framework useful for the privatization of the Sienese institute of which it holds 68% is at an advanced stage and in recent days it was about to arrive on the table of the first useful council of ministers, Mf / Milano Finanza wrote : "The text does not however, it is on the agenda of today's meeting and will not even enter among the "various and possible", underline government sources ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-come-il-mef-si-svenera-per-mps/ on Fri, 04 Sep 2020 13:30:18 +0000.