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Bank of Cyprus shores up base with $1.3 billion

First Published      Last Updated Jul 28 2014 04:45 pm

NICOSIA, Cyprus • Cyprus' largest bank says it has bolstered its capital base by raising $1.34 billion through a private placement of new shares.

Bank of Cyprus said late Monday the new shares each valued at 32 cents went to institutional investors from Europe, North America and Russia.

It said existing shareholders will get a chance to buy back up to 20 percent of those shares, but that the total capital raised would remain at $1.34 billion.

The bank said this will speed up its restructuring plans and help it pass European tests this year gauging its health.

Bank of Cyprus figured prominently in the country's multibillion-euro rescue last year that sanctioned a grab of uninsured deposits in its two biggest lenders.