BankMed raises capital

Capital adequacy ratio now at 12 percent

BankMed has recently raised its capital by $725 million through issuing more certificates of deposits (CDs) and new preferred shares. The bank’s total assets now stand at around $14 billion.

In December 2012, the bank issued CDs with a total value of $500 million at an interest rate of 5.375 percent. It also issued non-cumulative preferred shares for a total value of $225 million, redeemable after five years.

The capital increase lifted BankMed’s capital adequacy to 12 percent from 10 percent at end-2011. In line with Basel III requirements, banks should now have a capital adequacy ratio of at least 10 percent. This minimum should be raised to 12 percent by end-2015.

BankMed’s equity now stands at $1.2 billion, compared to $1 billion at end-June 2012. The value of its CDs rose to $800 million, from $300 million previously.

BankMed also acquired two real estate ventures during 2012. It bought Zumurouda Real Estate for $1.79 million and 528 Real Estate for an amount of $17.5 million, both paid in advance.