Shearman & Sterling advised the underwriters, led by Deutsche Bank and J.P. Morgan, in connection with Banco Comercial Português, S.A.’s capital increase of approximately €2.25 billion through a rights offering comprising the issuance of 34,487,542,355 ordinary shares.
Banco Comercial Português, S.A. (“Millennium bcp”) intends to use the proceeds from the offering to repay €1.85 billion of its hybrid capital instruments held by the Government of Portugal. The capital increase will also allow Millennium bcp to strengthen its capital ratios, in particular its common equity tier I (CET I) ratio.
Millennium bcp is one of Portugal’s largest privately owned banking groups, with nearly 750 branches throughout Portugal as well as significant operations in Poland, Angola and Mozambique and a presence in Switzerland, the Cayman Islands and Macao. All of Millennium bcp’s operations are carried out under the “Millennium” brand and, in Portugal, it also operates under the “ActivoBank” brand.
The Shearman & Sterling team of lawyers in the firm’s London and Washington, DC offices was led by Capital Markets partner David Dixter and included associates Lulu Zhou and Joseph Payne; Finance partner James Duncan; and Tax partner Kristen Garry and associate Mary Jo Lang.