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Central Popular Bank of Morocco Obtains the AMMC Approval to Increase its Capital

According to the prospectus referred to by the AMMC, the main objectives of the capital increase by the Central Popular Bank are to enable the historical shareholders to consolidate their participation in the company’s capital, to favor the reinforcement and the maintenance of the bank’s equity, and by the same occasion, its solvency ratios.

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The Moroccan Authority of the Capital Market has announced to have approved the prospectus relating to the increase in the share capital of the Central Popular Bank by partial optional conversion into shares within the limit of 50% of the dividends relating to the financial year 2020.

The group Central popular Bank (BCP) will proceed to a capital increase by partial optional conversion into shares within the limit of 50% of the dividends relating to the financial year 2020. Thus, the capital increase concerns a total of 3,076,116 shares, announces the Moroccan Capital Market Authority (AMMC) in a press release, while explaining that the global amount of the operation is $90.6 million (809 million MDH). Thus, the issue price is fixed at $29.5 (263 DH) per share and the nominal value is $1.12 (10 DH) per share. The AMMC added that the subscription period is from August 13th to September 13th inclusive.

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Objectives of the operation

According to the prospectus referred to by the AMMC, the main objectives of this operation are to enable the historical shareholders to consolidate their participation in the company’s capital, to favor the reinforcement and the maintenance of the bank’s equity, and by the same occasion, its solvency ratios. This without forgetting the importance of financing the organic development of BCP in Morocco and abroad. It is noted moreover that in accordance with the circular 14/G/2013 of Bank Al-Maghrib, relating to the calculation of the regulatory capital of credit institutions, as amended and completed, the funds collected through the operation will be classified among the core capital. Moreover, the BCP Group explains in its prospectus that this increase in registered capital is reserved to the holders of BCP shares on the eve of the detachment of the dividend (coupon 2020 attached). The detachment date of the 2020 dividend is scheduled for August 9th, 2021.

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Thus, the shareholders, wishing to participate in the operation, should hand over to the subscription order-collectors, and this, from August 13th, 2021 to September 13th, 2021 inclusive, a subscription form in conformity with the model put at their disposal. Subscriptions may be revoked at any time up to the end of the subscription period of the capital increase, by exercising the option of partial conversion of the 2020 dividend. Finally, the increase in capital will have no impact on the composition of BCP governance bodies.

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(Featured image by MabelAmber via Pixabay)

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First published in LesEco.ma, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Eva Wesley is an experienced journalist, market trader, and financial executive. Driven by excellence and a passion to connect with people, she takes pride in writing think pieces that help people decide what to do with their investments. A blockchain enthusiast, she also engages in cryptocurrency trading. Her latest travels have also opened her eyes to other exciting markets, such as aerospace, cannabis, healthcare, and telcos.