HSBC has just granted a €95 million credit to Intu Properties and Canada Pension Plan Investment Board (CPPIB) for acquisition of the Parque Principado shopping mall in Asturias.
Discouraged by broken agreements with Metrovacesa, HSBC decided to lend mere 58% of the entire amount (€162 million) due for the property to the two funds, for 5 years at a 4% + Euribor interest rate.
Metrovacesa borrowed over half a billion from the bank and when it declared itself insolvent (2008) HSBC received an 11% stake in it in exchange for the debt. Later on, the British bank sold its holding. In 2007, it lend another €1.2 million to the presently bankrupt company for purchase of a building in London. A year later, it re-acquired it for €828 million seeing incapacity of Metrovacesa to pay the debt off.
Original article: Expansión (by Roberto Casado)
Translation: AURA REE