20 August 2018
In the year to June, the Spanish bank signed ten financing operations, nine lines of guarantees, as well as seven comfort letters, worth fifty million euros, on its return to the development business after the European Commission.
Bankia has returned to the development business in a big way. The Spanish bank financed real estate projects in the amount of 180 million euros in the first half of the year in its return to the sector, after freeing itself of the restrictions imposed by Brussels five years ago as a condition for receiving lines of capital that saved the institution from bankruptcy.
From January to June, the institution signed ten financing operations, nine lines of guarantees, and seven comfort letters worth almost 50 million euros, as reported by the company on Monday.
In its return to the real estate business, Bankia created a development management team at the end of last year, in line with its plan to loan 400 million euros per year to the sector and capture a market share of 8% by 2020.
Bankia’s re-appearance in the area of developer loans began with a loan to the Basque group Amenabar, one of the country’s most promising developers, for the construction of 150 homes in Las Rozas (Madrid).
Alberto Manrique, director of Bankia’s development team, this line of business is “one of the bank’s levers” in a new phase of growth that began this year.
Original Story: EjePrime
Translation: Richard Turner