Bison Bank increases capital and opens door to new investors

  • ECO News
  • 9 October 2020

Bison Bank has already invested 5.7 million euros of the 19 million euros of the capital increase. The Chinese group admits new shareholders to ex-Banif investment bank.

Bison Bank has already invested 5.7 million euros of the 19 million euros of the capital increase it has committed to the Bank of Portugal and ensures that it will complete the operation by the end of the year. For the first time, the Chinese group officially admits new shareholders to the ex-Banif investment bank.

“The Bison group is open to receiving credible investor(s) as a strategic partner(s) in the bank’s shareholder structure so that more strategic resources are available to accelerate the bank’s growth,” the bank’s official shareholder source told the ECO.

When it bought the former Banif investment bank, the Chinese group pledged to the Bank of Portugal to inject 60 million euros into Bison Bank by the end of 2019. However, it only placed 41 million through a capital increase in July 2018, when it acquired the bank from Oitante.

The capital increase has been postponed. The Bank of Portugal even sent a letter to the bank imposing the end of June as a deadline. But it is only now, at the end of September, that Bison Bank has registered the capital increase of 19 million euros.

“Considering the full commitment to the capital increase, the prudential ratios as well as the capital requirement for the bank’s development, the shareholder has decided to increase the capital by 19 million euros, of which 5.7 million euros are already completed and the remaining 13.3 million euros will be provided by the end of December 2020,” explains the Bison Bank shareholder.

Asked whether the supervisor has accepted a capital increase in a “phased” manner, the group replies that it has “maintained timely communication on the plan and progress of the capital increase with the Bank of Portugal, through which the shareholder has shown its strong commitment through consistent efforts with the bank.”

The Bison Bank closed the first half of the year with losses of around 3.6 million euros, a period marked by the pandemic. The bank employed 57 people at the end of 2019. After the capital increase has been completed, the institution will have a capital of 198 million euros.