Mon May 12, 2014 4:50am EDT
(Adds background details)
By Aimee Donnellan
LONDON, May 12 (IFR) - Bailed-out Bankia is poised to sell a euro-denominated 10 non-call five-year Tier 2 bond in a move that will help the bank beef up its capital base ahead of European stress tests this year, according to a lead manager.
The Spanish lender has hired Bank of America Merrill Lynch, its own investment banking unit, Barclays, Credit Agricole CIB and Goldman Sachs to sell the deal, which is expected to be rated B- by S&P and launched in the near future, subject to market conditions.
Lenders such as Bankia are seeking to take advantage of optimal funding conditions to raise capital, with the cost of insuring subordinated debt having plummeted to a four-year low. The iTraxx Subordinated index is at 113bp on Monday, according to Tradeweb. At the end of 2011, it was at 530bp.
Bankia's emergence in the capital sector marks a significant turning point after the country's banks were crippled by a 2008 real estate crash that led several into state bailouts.
Bankia returned to the public funding market with a bang in January of this year, ending a funding drought of nearly two years with the sale of 1bn of five-year senior unsecured debt and fuelling hopes that it can free itself from government ownership.
Spain's government, which owns about 70% of Bankia through parent company BFA, has until 2017 to return the bank to private hands. But investment bankers in Madrid say that could happen earlier if its turnaround gains momentum, with the state possibly starting a sell-down towards the end of 2014.
In 2013, Bankia posted the biggest loss in Spanish corporate history, taking nearly 24bn of provisions on property loans in an attempt to wipe the slate clean.
(Reporting by Aimee Donnellan, editing by Philip Wright and Anil Mayre)
- Link this
- Share this
- Digg this
- Reprints
Anda sedang membaca artikel tentang
UPDATE 1-Bankia to raise capital buffers ahead of stress tests
Dengan url
http://streswajah.blogspot.com/2014/05/update-1-bankia-to-raise-capital.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
UPDATE 1-Bankia to raise capital buffers ahead of stress tests
namun jangan lupa untuk meletakkan link
UPDATE 1-Bankia to raise capital buffers ahead of stress tests
sebagai sumbernya
0 komentar:
Posting Komentar