BNP Paribas launches the first tranche of the share buyback programme planned for 2023Source: OMX
Paris, 31 March 2023
BNP Paribas launches the first tranche of the share buyback programme planned for 2023
BNP Paribas announces today the launch of the first tranche of the share buyback programme planned for 2023 for a maximum amount of EUR 2.5 billion.
BNP Paribas plans to launch a second tranche1 in the second half of 2023, bringing the total maximum amount to EUR 5 billion, including EUR 4.04 billion, with the intent of compensating for the effect of the dilution of the net earnings per share related to the sale of Bank of the West on February 1st, 2023.
BNP Paribas has received the approval from the European Central Bank for the first tranche and a contract was concluded with an investment services provider acting independently, entrusted with an irrevocable instruction to purchase the shares.
The purchase period will start on April 3rd, 2023 and will end no later than August 3rd, 2023. The shares purchased under the programme will be cancelled.
BNP Paribas will provide weekly updates on the progress of the programme via a press release on BNP Paribas’ website, and via full and effective dissemination in accordance with the applicable legal provisions:
The share buyback programme will be carried out in accordance with the provisions set out in the EU Regulation n°596/2014 of the European Parliament and of the Council of April 16th, 2014 on market abuse and its implementing provisions, and within the limits of the authorisation granted to BNP Paribas to purchase shares on the market pursuant to the 5th resolution adopted by the General Meeting of BNP Paribas on May 17th, 2022.
The description of the share buyback programme is available in appendix and on BNP Paribas’s website: https://invest.bnpparibas/en/search/reports/documents/regulated-information.
APPENDIX: DESCRIPTION OF THE SHARE BUYBACK PROGRAMME
The present description complies with the provisions of article 241-2, I of the General Regulation of the French Financial Markets Authority (Autorité des Marchés Financiers).
Date of the general meeting which approved the resolution concerning the share buyback programme
May 17th, 2022
Objectives pursued by BNP PARIBAS
In accordance with the fifth resolution approved by the combined General Meeting on May 17th, 2022, the shares may be purchased for the purposes of:
- their cancellation in situations identified by the Extraordinary General Meeting;
- honoring the obligations linked to the issuance of equity instruments, stock option plans, bonus share awards, the allotment or selling of shares to employees as part of a profit-sharing scheme, employee shareholding or Corporate Savings Plans, or any other type of share grant for employees and directors and corporate officers of BNP Paribas and of the companies controlled exclusively by BNP Paribas within the meaning of article L.223-16 of the French Commercial Code;
- holding and subsequently remitting them in exchange or as payment for external growth transactions, mergers, spin-offs or asset contributions;
- under a market-making agreement in accordance with Decision No. 2021-01 of 22 June 2021 of the French Financial Markets Authority (Autorité des Marchés Financiers – AMF);
- carrying out investment services for which BNP Paribas has been approved or to hedge them.
Maximum amount allocated to the share buyback programme, maximum number of shares to be purchased
The General Meeting has authorised the Board of Directors to purchase a number of shares representing up to 10% of the shares comprising the share capital of BNP Paribas, or, for illustrative purposes, as of December 14th , 2021, the date on which the share capital was last recorded, a maximum of 123,433,164 shares. Based on a maximum repurchase price of EUR 88 per share, set by the fifth resolution approved by the General Meeting dated May 17th, 2022, this number of shares represents a theoretical maximum purchase amount of EUR 10,862,118,432. Such limit is likely to change in case of transactions affecting the share capital.
The shares which may be purchased under the present description are BNP Paribas’ shares listed on Euronext Paris – A compartment, ISIN Code FR0000131104.
Considering that BNP Paribas owned as of May 6th, 2022 directly 721,971 of its own shares, i.e. 0.06% of its share capital, the number of shares that was likely to be purchased at the date of the General Meeting dated May 17th, 2022 is 122,711,193 shares representing 9.94% of the share capital, i.e., on the basis of a maximum purchase price of EUR 88 per share as set by the General Meeting, a theoretical maximum purchase amount of EUR 10,798,584,984.
Duration of the share buyback programme
The authorisation granted by the General Meeting dated May 17th, 2022, as described in the fifth resolution, is valid for an eighteen-month period with effect from the date of the said General Meeting, i.e. up to November 17th, 2023.
The Board of directors will ensure that these share purchases are carried out in accordance with the prudential requirements as defined by the regulation and the European Central Bank.
About BNP Paribas
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 190,000 employees, including nearly 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance, Arval and Leasing Solutions; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Türkiye, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.
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1 Upon customary condition precedents, including ECB authorisations