New Bank. Proposals far from the 4.9 billion
Those interested in the institution must now deliver the final proposals for the new Bank. Banco de Portugal wanted to deal closed in summer.
The five interested in buying the New Bank (NB) deliver today, to 17.00, the final proposals to the Bank of Portugal (BoP). The market believes that none of the proposed approaches, even out of the € 4.9 billion that were required to capitalize the bank, but that may be on the table other issues that value offers such as capital increases.
Operations required for NB can stay abreast of the sector in Portugal, with regard to capital ratios. According to the opening balance of the institution, the Core Tier I ratio of NB was 9.5%, down from 10% recorded by the other institutions.
In the run on the bank led by Eduardo Stock da Cunha, who was with the healthy assets of BES are Spain’s Santander, the Anbang and Fosun Chinese and Americans Cerberus and Apollo. The Bank of Portugal has not made any statements, telling just how many stakeholders are still in the race at the end of each procedure.
For the Chinese Fosun, already owners of Fidelity – the insurer belonging to the Caixa Geral de Depósitos – the purchase of the New Bank would mean the entry into the banking sector in Portugal. It is recalled that part of EDP and REN already belong also to the Chinese Three Gorges and the State Grid, respectively. Getting a bank would be an asset even for business expansion of Chinese investors in the country.
Sources close to the process say the Anbang will have the highest bid in terms of value, but the Fosun will offer other counterparts. In the race are still the Apollo investment fund – who had already tried to buy Fidelity – and Cerberus. And the Spanish Santander, which were more than one time as data out of the race, but have a unique advantage: they are the only European institution interested in NB
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Remember that the final word on the buyer will be given by the European Central Bank, since the NB was born the measure of resolution applied to BES. After delivered proposals, the BOP can still negotiate with several competitors before the final decision. Carlos Costa has said it wanted the sale process closed during the summer, although the resolution mechanism provide that the bridge bank to be sold within two years after its creation.
If it is confirmed that the winning bid does not reach the 4.9 billion euros, will be the resolution fund – that is, the other national system banks – to bear the losses. The Economic recently reported that this support, however, would have little impact on the banks of results, as could be done by an extended deadline.
It is recalled that at the time of resolution, NB received money as follows: 3.9 billion were guaranteed by a state loan 700 million for a loan from the bank and 300 million settlement fund’s capital ( coming from contributions from normal financial institutions since 2012).
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