Coop appoints Citigroup to coordinate capital increase

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By Stelios Orphanides

The state-owned Cyprus Cooperative Bank said that it selected US lender Citigroup to act as global coordinator in its planned capital increase, which is part of its strategic Agenda 2020.

“Citigroup is a leading banking group with global outreach and significant presence in Southeast Europe,” the former Cooperative Central Bank said in an emailed statement on Monday. “This is an important step for the Coop to become a modern, European bank, which will put the interests of its customers, the country and its shareholders first”.

The chief executive officer of the Cypriot bank, which received a €1.7bn capital injection from the government in 2014 and 2015, said a month ago that he expects that the capital increase will take place by June next year.

The bank exhausted all available margins for tapping state aid and is working on a Cyprus Stock Exchange listing which will allow it to raise private capital via successive share issues over the next three-year period aiming at reducing the government’s shareholding from currently 99 per cent to below 25 per cent.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Terryw45

    “This is an important step for the Coop to become a modern, European bank, which will put the interests of its customers, the country and its shareholders first”.
    Well, I’m stuck for words.

    • Mist

      The missed the words “and staff” ?

    • Peter G

      Maybe. But ‘the people’s bank” was looted by “the people” when they were in power and needed government buyout to safeguard the money of the rest of the “people.”

      So the government, after fulfilling its task, is getting out of banking and turning the so-called co-op to the private sector. I guess some have a problem with that.

  • Jim

    Bailed out by the government I 2014 & then again in 2015. No more government cash, so now trying to raise some from anywhere it can.
    I do not rate their chances.
    I think most banks in Cyprus are still having solvency problems due to the high bad loan situation.

  • Mist

    Going to the Americans for help. He arch instigators of the Cyprus problem but what the heck, Love conquers everything, but cash is better.

  • John Henry

    How about starting small; like getting the ATM at SPE Aglanjia to work a little more often than 66% of the time.

  • Barry White

    One can only presume that the Citi contract with Coop has in bold “ALL CARE, NO REPONSIBILITY”