BANIF-SGPS 
By
Banif - Banco Internacional do Funchal, S.A. (Banif) announces that, after appraisal by
the Banco de Portugal and following
the agreement in pr nciple from the Portuguese
State
regarding
its participation in
the Group's Recapitalisation
Plan (developed
according to law nº 63-A/2008, November 24th), it will submit the recapitalisation plan
for approval at
January 2013.
the next
General Meeting of
Shareholders, to be
held on the 16th
The recapitalisation plan
will be implemented in 2 stages and
comprehend the
following types of investment:
i) An initial public investment of €1,100 million, following the approval of the
Recapitalisation Plan, comprising:
a) The issuance of contingent convertible bonds eligible as Core Tier 1 capital
in the total amount of
€400 million, pursuant to law nº 63-A/2008,
November 24th and other applicable laws;
b) Share
capital increase of
Banif, in
cash with
suppression of pre-emption
rights, reserved for the subscription of the Portuguese State, totalling €700
million, through
the issuance of 70.000.000.000 of new
shares, of
which
44.511.019.900
€0.01/share.
shares with full voting rights at an issuance price of
Banif - Banco internacional do Funchal, SA
Sede Social: Rua de João Tavira, 30 - 9004-509 Funchal
Capital Social: 570.000.000 Euros
Número Único de Matrícula e Pessoa Colectiva: 511 202 008
ii)
At a second stage, an additional share capital increase of Banif (to be made
by the end of June 2013), in the amount of €450 million, with subscription
through a public offer on
conditions yet to be defined. In the context and
for the purposes of this second stage, the current reference shareholders
have
presented
an underwriting commitment
to subscribe €100
million
shares.
The proceeds from the capital increase referred in ii) will be used for anticipated
reimbursement of contingent convertible instruments.
This
process will allow Banif to reach the target established by Banco de Portugal,
through Aviso nº3/2011, of a Core establish a prudential capital buffer.
Tier 1 ratio above 10% and, siimultaneously, to
The recapitalization process is based on interim support of the State for a maximum of
5 years and involves an aggressive process of restructuring of the business model and enhancement of its core segments of activity.
The Board of Directors has performed a thorough review of the business plan of the
Group, which will lead to a deep transformational process from which the bank will emerge as a stronger group and fully focused on its core segments of activity.
Banif's strategic
plan, which is embodied in the restructuring process of the Group,
fully
focused on value creation, will
adjust the business
model and organizational
structure to current market reality, ensuring a return to sustainable profitability levels and strengthened solvency and liquidity levels.
According to the applicable legal framework,
the recapitalisation
of Banif
is also
subject to decision, from the European Commission (EC), of its complliance with State-
aid rules, as well as the EC's formal
approval of a restructuring plan for Banif to be
submitted during the following months.
Banif - Banco internacional do Funchal, SA
Sede Social: Rua de João Tavira, 30 - 9004-509 Funchal
Capital Social: 570.000.000 Euros
Número Único de Matrícula e Pessoa Colectiva: 511 202 008
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