Banca Civica launches IPO bookrunner

MADRID: Spanish savings bank Banca Civica launched its initial public offering (IPO) on Wednesday, bookrunner Credit Suisse said, aimed at raising 900 million euros ($1.3 billion) to meet new capital requirements.

Spain has forced banks to shore up capital levels to reassure global markets about the stability of its financial system. One of the options for boosting capital ratios is for savings banks or cajas to seek a stock market listing.

Banca Civica has previously said it was looking to raise around 900 million euros from floating a stake of around 40 percent and a source close to the deal confirmed on Wednesday that was still the bank's plan.

The Bank of Spain has said Civica needed 847 million euros to meet a target capital ratio of 10 percent. This could come down if it lists as capital requirements are lower for those with more than 20 percent of their capital in private hands.

But a second source close to the deal said Banca Civica was targeting 10 percent and planned to repay a 977 million euro loan from the state-run bank restructuring fund over a five-year period.

Civica, created by a merger of three smaller savings banks, plans to publish its listing prospectus around June 22 or 23, the first source said, and aims to begin trading on July 13.

Analyst research has been sent out, the sources said, and talks with institutional investors are beginning in London.

Civica plans to list on the exchanges in Barcelona, Bilbao, Madrid and Valencia, joining Spain's largest savings bank, Bankia, which has already begun marketing its up to 4 billion euro listing.

The listings are a key step in the restructuring of the banking sector, one of a series of reforms undertaken by the government to convince markets Spain will not need a bailout along the lines of Greece, Ireland and Portugal.

Credit Suisse is the global coordinator of the offering and is a bookrunner along with Morgan Stanley Banca Civica was not available for comment.

Copyright Reuters, 2011