Tag: BFA-Bankia

BFA-Bankia Returns €20.6M To Sareb After Asset Sale

15 January 2016 – Expansión

The amount was distributed in the form of bonds issued by BFA and its subsidiaries amounting to €1.4 million and bonds issued by Bankia and its subsidiaries amounting to €19.2 million.

The BFA-Bankia group has paid back €20 million to Sareb in the form of bonds, after adjusting the perimeter of its asset transfer agreed on 21 December 2012.

According to a statement made by the entity to the CNMV, this amount has been calculated by applying the criteria of the aforementioned contract, which is distributed in the form of €1.4 million in terms of bonds issued by BFA and its subsidiaries and €19.2 million relating to bonds issued by Bankia and its subsidiaries.

The return was made effective yesterday, whilst the actual correction took place on 30 December 2015. In addition, the coupons that the company would have settled prior to the correction settlement date, have been included in the calculation of the bond amount subject to correction.

Original story: Expansión

Translation: Carmel Drake

Bankia Reduced Its Doubtful Loans By €2,000M In 2015

11 January 2016 – Expansión

The BFA-Bankia group reduced its doubtful debt balance by more than €2,000 million in 2015 through the sale of several loan portfolios. According to the entity, these operations allowed the bank to improve the quality of its balance sheet, raise liquidity and free up resources to grant new credit.

During the year, the bank completed four major operations involving the sale of loan portfolios with a total value of almost €2,800 million.

In May, BFA-Bankia agreed the sale of a portfolio of doubtful property developer loans amounting to €558 million to the fund Sankaty. Some of those loans were secured by real estate collateral.

A month later, the bank sold a portfolio of loans secured by hotel assets amounting to €383 million. The portfolio contained 91 operations in total, linked to 45 assets, and was sold to Bank of America and the investor Davidson Kemper.

In September, the bank closed the largest of its operations, by selling a portfolio of loans linked to the real estate sector amounting to €1,206 million, of which €986.8 million was secured. The purchasers in this case were the funds Oaktree and Chenavari.

In the last few weeks, BFA-Bankia has transferred a loan portfolio amounting to €645.1 million, all granted to the business sector and partly secured by real estate collateral, to Deutsche Bank.

Sources at Bankia highlight that, in order to maximise the prices obtained, a competitive process has been adopted for all of the portfolio sales between prestigious institutional investors and financial institutions.

Original story: Expansión

Translation: Carmel Drake