- 3 min
Crédit Agricole S.A. and Banco Popolare signed an agreement relating to Agos Ducato
On Tuesday, Consumer Finance, Credit Agricole SA, CA Consumer Finance and Banco Popolare signed an agreement relating to Agos Ducato, the leading company in the Italian consumer credit market with €18 billion in outstanding loans under management, which is 61% owned by CA Consumer Finance and 39% by Banco Popolare.
This agreement covered the following main points:
- A €450 million increase in the company’s capital, of which €300 million will take the form of a share issue subscribed by the two shareholders proportional to their current holdings, the balance being in the form of subordinate loans;
- The adoption of a new business plan confirming Agos Ducato’s return to break-even in 2014;
- A diversification of Agos Ducato’s financing in the financial markets.
This agreement completes a series of measures first undertaken in the spring of 2012, against a background of an increase in the cost of risk at Agos Ducato.