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News Feb 08, 2017

Shearman & Sterling Advises Underwriters on Banco Comercial Português, S.A.’s €1.33 Billion Capital Increase

Shearman & Sterling advised the underwriters, led by Goldman Sachs International and J.P. Morgan, in connection with Banco Comercial Português, S.A.’s (BCP) capital increase of approximately €1.33 billion by way of a rights offering comprising the issuance of 14,169,365,580 ordinary shares. The syndicate of underwriters also comprised BofA Merrill Lynch, Credit Suisse and Mediobanca.

BCP intends to use the proceeds from the offering to repay €700 million of hybrid capital instruments issued to the Government of Portugal as part of its recapitalization plan implemented in 2012. The capital increase will also allow BCP to strengthen both its common equity tier 1 ratio and the implementation of its strategic goals. As part of the rights offering, Fosun International increased its stake in BCP to 30% following its initial investment in 16.7% of BCP's share capital by way of a private placement in November 2016.

BCP is one of Portugal’s largest banking groups, with nearly 630 branches throughout Portugal as well as significant operations in Poland, Angola and Mozambique and a presence in Switzerland, the Cayman Islands and Macau. All of BCP’s operations are carried out under the “Millennium” brand and, in Portugal, under the “ActivoBank” brand.

The Shearman & Sterling team included partners David Dixter (London-Capital Markets), Kristen Garry (Washington, DC-Tax), James Duncan (London-Finance); counsel Pawel J. Szaja (London-Capital Markets); and associates Minkyu Park (London-Capital Markets), Adam Sternberg (New York-Tax) and David Shennan (London-Finance).