FROB imposes haircut of up to 62pct on Liberbank preference shares|
MADRID, APR. 09 (Bolsamania.com/BMS) .- Spain's Fund for Orderly Bank Restructuring (FROB) has ordered a haircut of up to 62 percent on remaining preference shares and subordinate debt at Liberbank.
The hybrid securities will be swapped into shares that will be listed in the Spanish stock market.
Around 87% of the bank's investors took up a voluntary offer made by Liberbank, falling short of a 90% target and forcing those who held out to accept terms dictated by the European Union and the FROB during last year's bailout of the banking sector.
The FROB pointed out that investors will receive a greater amount than if the bank was to be liquidated.
Liberbank investors has €866m in preference shares and subordinate debt, of which €549m are held by retail investors, many of whom are small savers.
The new shares are expected to be listed in the Spanish stock market on May 16 and are expected to make up 25 to 30% of capital.