Cyprus Marfin shareholders back capital boost

Shareholders of Cyprus-based Marfin Popular Bank on Thursday approved plans to boost its capital with a 488.6 mln euros rights issue and a convertible securities issue worth up to 660 mln euros.
The shoring up of Marfin's capital comes ahead of anticipated stricter global rules by regulators to prevent a repeat of the 2008 financial crisis. After both operations, Marfin Popular's Tier 1 will rise to 13.9% from 9.8%, Marfin CEO Efthymios Bouloutas said.
The issues would also enable the bank to meet more domestic demands as Cyprus emerges from recession into recovery, he said.
The rights would be issued at a ratio of 1-for-2 at 1 euro each, representing a discount of 30% to its shares on November 1, when management took the decision. The convertible capital securities would be placed with investors until the end of 2011.