SANTIAGO, Oct 27 (Reuters) - Chilean bank Bci said its shareholders on Tuesday approved a $450 million capital increase to bolster its finances following its recent purchase of a unit of Spain’s Bankia unit in the U.S. state of Florida.
Bci said the equity financing would be used to help it maintain its Tier 1 capital ratio, which is the core measure of a bank’s financial strength from a regulator’s point of view.
In 2013, bank shareholders approved a 199 billion Chilean pesos ($290 million) capital increase. But Bci said it was scrapping that plan and replacing it with the new capital increase agreed to on Tuesday after the value of the Bankia deal rose.
The initial price tag for Bankia’s City National Bank of Florida was set at $883 million, but the final agreed cost after a longer-than expected approval process rose to $947 million. The transaction was cleared by the U.S. Federal Reserve in September.
$1 = 686.4500 Chilean pesos Reporting by Anthony Esposito Editing by W Simon