Banco Popular addresses capital

Spanish bank Banco Popular is to reinforce its position ahead of the new Basel III regime on capital adequacy, with plans to raise up to €679m (£577m) of new capital. The bank will strengthen its capital base by €579m-€679m with a 3 per cent capital increase taken up by France’s Credit Mutuel-CIC, and a €400-500m bond issue for retail investors compulsorily convertible into shares. Chairman Angel Ron said: “Banco Popular’s capital will be well above the minimum core capital requirements and will thus achieve a position of advantage.”