Thursday June 26, 06:30 PM
French bank Natixis gets 1 bln euros advance to boost finances
PARIS (Thomson Financial) - French investment bank Natixis (Paris: FR0000120685 - news) said Thursday it had received a 1 billion euro advance from its two shareholders to shore up its finances.
The loan, which follows an earlier injection of 1.5 billion euros, 'will enable Natixis to strengthen the development of its operations while dealing with the financial crisis,' Natixis said.
It said the fresh funds would give it a Tier One capital ratio of 8.5 percent, putting it well above the current minimum of 4 percent for this gauge of a bank's financial health.
The bank (TBHS - news) said the latest advance 'would be all or partially replaced by funds generated from share issues that Natixis will undertake in the coming months, depending on market conditions.'
The sub-prime mortgage crisis in the United States has cost Natixis 2.4 billion euros. It has already announced a plan calling for the elimination of 800 jobs in France, 250 overseas and 800 among its external service providers.
Natixis is owned by French banks Caisse d'Epargne and Banque Populaire.
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