July 30, 2019 / 3:09 PM / 25 days ago

Italy's FITD fund to invest up to 636 mln euros in Carige

MILAN/ROME, July 30 (Reuters) - Italian banks will spend up to 636 million euros ($709 million) to keep ailing rival Banca Carige in business, according to a senior executive at the banking fund that approved the investment.

The FITD depositor guarantee fund financed by the country's lenders on Tuesday backed the latest rescue plan for Carige, agreeing to shoulder the bulk of a proposed 900 million euros cash injection.

FITD Director General Giuseppe Boccuzzi said the fund would convert into equity a 313 million euro bond issued by Carige and take part in a new share issue for 238 million euros. The fund also stands ready to mop up any new shares left unsubscribed by the bank's current shareholders for up to 85 million euros.

$1 = 0.8976 euros Reporting by Stefano Bernabei and Elvira Pollina, writing by Valentina Za

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