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UniCredit raises 550 million through asset sale

Staff Writer |
UniCredit said it had raised over half a billion euros as part of its latest asset sale.

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The 552 million euros ($609 million) from the sale of 20 percent of its online banking subsidiary Fineco will be used to boost Unicredit's core capital - the amount of funds available to absorb losses - which has recently fallen perilously close to European banking limits.

Unicredit, Italy's largest bank by assets, said the funds should add 0.12 percentage points to Core Tier 1 ratio, which had fallen to 10.3 percent in June from 10.85 percent in March.

UniCredit was among the worst performing banks in stress tests by the European Banking Authority in late July and has been seeking to strengthen its position in terms of capital.

The bank is widely expected to tap the stock market for funds to make up the capital shortfall eventually, but wants to exhaust other avenues to raise cash first.

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