These sources have confirmed that the new business plan will maintain its return on equity around 14%-15%, which had been forecasted in the initial design for the 15 year operational period of the company.
The strategy designed by the institution presided over by Belen Romana will take into account the capacity of absorption of the market for each and every asset and their geographical location.
This readjustment of the business plan will update the valuation of the “toxic” assets. The first estimates were based on their value in the accounting books on the 31st December 2011. The same will be done with the link of the debit side to the evolution of the business portfolio.
The bad bank is planning to absorb on the 28th February the damaged assets of the group 2 institutions (BMN, Liberbank, Banco Ceiss and Caja3), once the capital has been increased to 1200 million Euros, after the entrance of new partners: Iberdrola and Banco Caminos.
With the assets from the nationalized institutions – Bankia, Catalunya Banc, Novagalicia Banco and Banco de Valencia – the bad bank will unite a total volume of 55000 million Euros.
Another key aspect which will influence the credibility of the future plans of the bad bank will be the dividend policy. The market was speculating on a retribution to those banks and insurance companies which have joined the Government´s project from the very first year.
“This dividend strategy would not be very realistic”, sources aware of the bad bank´s plans have admitted. There is still no firm decision on this matter. KPMG will have around two months to redo the bad bank´s future plans.
These sources have pointed out that the bad bank link the payment of dividends to the repayment of the senior debt and the payment of the retribution of the subordinate debt in the hands of shareholders.
The institution led by Romana carried out its third capital extension last week. The institution also plans to carry out a new subscription of subordinate debt during the last week in February. The current investors, as well as the insurance companies Santa Lucía, Reale and Zurich will participate in this operation.
In global, the private investors of the bad bank contribute with 2607,60 million Euros and the FROB contributes with 2192, 40 million Euros. Private capital is therefore 54,33% of the company, while public capital would be 45,68%. Santander and Caixabank are the main shareholders. Deutsche Bank, Barclays and insurance companies such as Mapfre and Axa, are also shareholders.