Portuguese Ministry of Finance - EUR1.4 billion recapitalisation of the Portuguese bank Banif

31 Dec 2012

Slaughter and May, working as an integrated team with Vieira de Almeida & Associados, advised the Portuguese Ministry of Finance on the EUR1.4 billion recapitalisation of the Portuguese bank Banif - Banco Internacional do Funchal, S.A. The recapitalisation will comprise an initial investment by the Portuguese Republic of EUR1.1 billion in a combination of contingent convertible instruments and special shares, followed by a private capital raising to be completed by the end of June 2013. The recapitalisation, which was announced by the Ministry of Finance and Banif on 31 December 2012, remains subject to the approval of Banif's shareholders and the European Commission.

This transaction follows similar recapitalisations completed by the Portuguese Republic in June 2012 in respect of three other banks (Banco Comercial Português, S.A., Banco BPI, S.A. and Caixa Geral de Depósitos, S.A.) on which Slaughter and May and Vieira de Almeida & Associados also advised. In these earlier recapitalisations, the State committed to invest a total of EUR6.65 billion in a combination of contingent convertible instruments and special and ordinary shares.

The recapitalisations of these four banks reflect the aim of the Portuguese authorities of ensuring that Portuguese banks' balance sheets and capital strength maintain the confidence of investors, counterparties and depositors. They also enable each to exceed the capital targets set by the European Banking Authority and position them to ensure the continued access to credit for the Portuguese economy.

Contacts

Corporate and Commercial: Charles Randell (partner), Nilufer von Bismarck (partner), Jonathan Wiseman (associate); Competition: Isabel Taylor (partner), Lisa Wright (associate), Kate Logan (associate); Financing: Ian Johnson (partner), Gabrielle Ereira (associate); Financial Regulation: Ben Kingsley (partner), Tolek Petch (associate)

Vieira de Almeida & Associados: Pedro Cassiano Santos (partner), Paula Gomes Freire (partner), Miguel Mendes Pereira (partner)


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