Spain 
Italy 
Greece 
Sale of Novo Banco Concludes Today
17 October 2017
The signing ceremony for the conclusion of the 75% sale of Novo Banco to Lone Star will take place [today] at 11:30 am, the Banco de Portugal confirmed.
The signing ceremony for the conclusion of the sale of 75% of Novo Banco to the U.S.-based Lone Star will take place this Wednesday at 11:30 am, according to the Bank of Portugal.
Yesterday, the Resolution Fund approved the capital injection for Novo Banco. According to the agreement with Lone Star, the U.S. fund will control 75% of the bank’s capital, reinforcing the bank’s capital base with an injection of 750 million euros.
Subsequently, Lone Star will make a further capital injection of 250 million euros in Novo Banco.
The conclusion of the sale of Novo Banco occurs after the requirements of the sale agreement have been fulfilled, namely the conclusion of the bank’s debt repurchase operation, with losses for bondholders.
On 11 October, the European Commission approved the restructuring of Novo Banco, allowing Lone Star to take over the bank.
Although Lone Star will control Novo Banco, the Resolution Fund, through a state guarantee, may have to inject capital of up to 3.9 billion euros, should the capital ratio (of the bank) fall below the threshold due to losses in the old asset portfolio.
But the state may have to secure additional capital injections if necessary.
Original Story: Dinheiro Vivo – Elisabete Tavares
Photo: Alvaro Isidoro / Global
Translation: Richard Turner