UniCredit Libyan investors interested in cap hike

UniCredit's Libyan shareholders are interested in taking part in the 7.5 billion euro rights issue the bank is planning to help shore up its balance sheet, Chairman Dieter Rampl said on Monday.

"UniCredit is working to take the necessary steps to allow the Libyan shareholders to take part in the capital hike," Rampl said on the sidelines of a conference.

UniCredit, Italy's biggest bank by assets, is looking to launch its cash call early next year.

The Libyan Investment Authority has around 2.6 percent of the bank while the Libyan Central Bank has a 4.6 percent stake.

Last Monday UniCredit Chief Executive Federico Ghizzoni said the Libyan investors cannot at present take part in the issue because their shares are still frozen following the Libyan conflict.

Some analysts have said the Libyan investment authority and central bank could also prove reluctant to take part in the capital hike as the country's new leaders focus on rebuilding after the civil war.

UniCredit's banking foundation shareholders are backing the group's capital increase, Rampl said on Monday.

The foundations, which together own about 13 percent of UniCredit, are seen by some as being constrained by a limited availability of cash.

UniCredit, which will lift its Core Tier 1 ratio to 10.35 percent after the issue, is the only Italian name in a list of the most important global banks released earlier this month.

Shares in UniCredit closed down 2.99 percent while the European banking index ended down 3.74 percent.