UniCredit gears up for €13bn rights issue

摘要

Unicredit is on course to raise more than €5bn from asset sales and is expected to follow that up by raising about €13bn from a rights issue this week to bolster its capital, people familiar with the matter and analysts said. The substantial cash call is needed to improve the bank's weak balance sheet and to use capital to cover provisions from cleaning up its bloated portfolio of non-performing loans. UniCredit's new chief executive Jean Pierre Mustier will unveil his strategy on Tuesday. The Frenchman, who used to run Societe Generale's investment bank, took over at UniCredit in July, and needs to set out a strategy that shows bold action and puts worries about UniCredit's capital strength to rest.