BANCI | ENGLISH

BNP Paribas commits to financing the real economy

Autor: Bancherul.ro
2008-10-21 09:10

Paris, 21st Oct. 2008

The Group takes part to the tune of �2.55 billion in the plan to support growth

The French government has announced(1) the introduction of a plan to support lending growth within the economy. This plan is subject to review by the European Commission. Open to banks who comply with regulatory capital requirements imposed by the Commission bancaire, this plan allows them access to complementary funding in the form of subordinated debt which counts towards Tier 1 capital.

In the interests of its clients and shareholders, BNP Paribas has decided to take part in this plan to the tune of �2.55 billion. Under this plan, BNP Paribas will have access to complementary funding on satisfactory terms, taking into account the Group's financial strength, at a time when debt markets for this kind of funding remain inactive.

The subordinated debt to be issued equates to a loan which doesn't give rise to the French State taking a stake in BNP Paribas in contrast to the recent mechanisms, set up by Governments around the world, for recapitalising banks in difficulty. This issue will not be dilutive for shareholders and will not impact the bank's governance nor its dividend policy.

The purpose of this operation is not to increase the bank's Tier 1 ratio which complies with the Commission bancaire's requirements(2). BNP Paribas has one of the best credit ratings in the world. Generally speaking the French market remains one of the most resistant in Europe. In addition, the BNP Paribas Group has, since the beginning of the crisis, demonstrated its ability to generate solid earnings based on its widely diversified activities and its rigorous risk policy. It is therefore particularly well placed to play its role in accompanying its customers and the financing of the economy.

***

Commenting on this plan, Baudouin Prot, CEO of BNP Paribas said, �With the acquisition of Fortis' businesses, BNP Paribas both becomes the Eurozone's number 1 bank by deposits and significantly strengthens its capital position. In taking part in the French State's scheme and issuing subordinated debt, BNP Paribas has the means to pursue its organic growth strategy which is based on the dynamism of its salesforce and an even further strengthened financial structure.�

Annex

Transaction terms(3)

BNP Paribas commits to issue �2.55 billion of hybrid debt before year end, entirely bought by SPPE, a company created by the French State for this purpose.

These securities will take the form of hybrid debt (TSSDI), with a 5 year call option at the issuer's option. An earlier reimbursement is allowed in agreement with the Commission bancaire if the securities are replaced by hybrids of equivalent subordination and nominal value.

These securities count towards Tier 1 capital.

For BNP Paribas, the debt will be remunerated to the French State on the following basis: 5-year OAT yield + approximately 400bps

In exchange, BNP Paribas will fix growth objectives for its loan commitments to the economy and commit to applying ethical rules as defined by the MEDEF which are already largely in place within the Group.

(1) French Government press release available on : http://www.minefe.gouv.fr/
(2) Commission bancaire press release available on : http://www.banque-france.fr/
(3) Subject to review by the European Commission

About BNP Paribas

BNP Paribas (www.bnpparibas.com) is a European leader in global banking and financial services and is one of the 3 strongest banks in the world according to Standard & Poor's. The group is present in over 85 countries, with more than 168,000 employees, including 129,500 in Europe. The group holds key positions in three major segments: Corporate and Investment Banking, Asset Management & Services and Retail Banking. Present throughout Europe in all of its business lines, the bank's two domestic markets in retail banking are France and Italy. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii

Vezi toate stirile

24.11.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Misu Negritoiu, Presedinte
ASF - Autoritatea de Supraveghere Financiara

... vezi profil

Toate Profilele

Profil de Banca

CPBR

vezi detalii

Toate Bancile

Filmul Parking, un cliseu plictisitor

Toate stirile

ING Bank

Toate stirile

Ultimele Comentarii

plati online
ING respinge in mod constant platile facute online cu cardurile ... detalii
!
Greu cu limba romana! Ce legatura are cuvantul "ecosistem" din limba romana cu sistemul de plati ... detalii
Bancnote vechi
Am 2 bancnote vechi:1-1000000lei;2-5000000lei Anul ... detalii
Bancnote vechi
Numar de ... detalii
Bancnote vechi
Am 3 bancnote vechi:1-1000000lei;1-5000lei;1-100000;mai multe bancnote cu eclipsa de ... detalii

Nume	*
E-mail	*
E-mail prieten	*
Mesaj
Cod validare	*
	Tastati codul din imagine (doar cifre)
	195.154.184.126