Monte dei Paschi di Siena (MPS) set the terms for a cash call it will make on Monday for up to 2.5 billion euros ($2.4 billion).
Here is a timeline of some of the most important events in the history of MPS, which dates back to the 15th century.
In November 2007, MPS bought Antonveneta from Santander (BME:SAN) for 9 billion euros in cash, a few months after the Spanish bank paid 6.6 billion euros for it.
In January 2008, MPS announced that it would fund the Antonveneta deal with a 5 billion euro rights issue, a 950 million euro capital increase reserved for JPMorgan (NYSE:JPM), a 2.16 billion euro Tier2 bond, and a 1.56 billion euro bridge loan.
March 2009 Italy’s Treasury buys special bonds from MPS for 1.9 billion euros to help the country’s finances.
JULY 2011: MPS sells shares to raise 2.15 billion euros before the results of the European stress test.
September 2011 As the eurozone’s sovereign crisis worsens, the Bank of Italy provides MPS with 6 billion euros in emergency funds.
In March 2012, MPS said that it lost 4.7 billion euros in 2011 because of big write-downs on deals like Antonveneta.
JUNE 2012: MPS asks the Italian Treasury to back up to 2 billion euros more in special bonds.
In October 2012, shareholders agreed to a plan to sell 1 billion euros worth of shares to new investors.
MARS 2013: The falling prices of Italian government bonds hurt MPS in 2012 and caused it to lose 3.17 billion euros.
JUNE 2014: MPS sells shares for 5 billion euros and gives the government back 3.1 billion euros.
In October 2014, stress tests across Europe showed that MPS did the worst.
MPS receives 3 billion euros in cash in June 2015, following a net loss of 5,3 billion euros in 2014 due to record write-downs on bad loans.It pays back the rest of the state-backed special bond, which was worth 1.1 billion euros.
JULY 2016: After European bank stress tests, MPS announces a new $5 billion rights issue and plans to get rid of 28 billion euros in bad loans.
DECEMBER 2016: After its cash call fails, MPS asks the government for help through a precautionary recapitalization scheme.
July 2017: After the ECB says that MPS is financially stable, the EU Commission approves an 8.2 billion euro bailout that gives the government a 68% stake for 5.4 billion euros.
MPS closes the biggest bad loan securitization deal in Europe in October 2019.
August 2020: Italy sets aside 1.5 billion euros to help MPS meet its re-privatization deadline at the end of 2021.
FEBRUARY 2021: MPS opens its books to potential buyers and says that it lost 1.69 billion euros in 2020.
JULY 2021: UniCredit starts private talks to buy “selected parts” of MPS, just one day before the results of a European Banking Stress Test show that MPS’s capital would be wiped out in a downturn.
Talks with UniCredit end in October 2021.
JUNE 2022: MPS announces a 2.5 billion euro capital increase for the end of October and makes a deal with banks for pre-underwriting.
In October 2022, MPS gets an underwriting agreement with a group of eight lenders at the very last minute. This is after investors have already agreed to buy its new shares.
($1 = 1.0306 euros)
