Invested in BES obligations? New Bank wants to buy back – TVI24

Who invested in debt of Banco Espírito Santo, who went to the New Bank with the resolution after the BES collapse, can get rid of these obligations before the deadline of them end with a prize in relation to the market value. The New Bank is proposing to buy back this debt up to a limit of 500 million euros and concerned, are bonds that mature in 2019 and 2022.

Basically, the repurchase price will be at current market prices , entitled to an additional premium of 1.5% to 2.5%.

However, warns immediately the statement sent by the New Bank to the market regulator, CMVM, the secondary bond market “does not enjoy a high degree of liquidity.”

“Because of the illiquidity of the bonds, the various market participants can observe different sales prices can vary, among others, depending on the amounts and transaction platforms,” ​​adds. In this table, indicated the code of each line (you have to see in your bank account to understand what is that about says it), the minimum purchase price of each series and the corresponding implicit profitability rate:

Source: CMVM

at issue, are as eight lines of bonds , with all time maturing in 2019 (five of them) and in 2022.

the period of this offer ends on June 29, the day will be announced the acceptance and results and on July 4 proceed shall be the settlement, ie the payment of the purchase price and accrued interest on the bonds accepted for purchase.

The New Bank also warns that the rescue tool “allows the recapitalization of a bank that is in trouble by imposing losses to certain creditors over the repayment of their loans or converting them into capital the bank “.

This operation takes place in the context of the institution’s restructuring plan led by Stock da Cunha, which aims to lower funding costs. “The business plan also includes the implementation of a set of other measures aimed at the recovery of the profitability of the New Bank [and the offerings] are one of the measures envisaged in the business plan and aims to strengthen the New capital position Bank and improve its future financial margin, argues

the New Bank argues that this may be a way for investors to cope with a market that is falling, freeing up these applications:. ” . bond prices have been under pressure due to a number of factors that have had and may continue to have a negative effect “

and the lists eight factors to justify:

• fears about the future prospects of the Portuguese economy and the state of the Portuguese financial sector
• the status of the New Bank as bridge bank
• uncertainty about the definition of the perimeter of assets and liabilities New Bank
• uncertainty of your sales process by the Resolution Fund
• many litigation on the measurement resolution and the transmission (or retransmission) of certain liabilities
• bond rating

Remember that the New Bank more than doubled losses in the first quarter of this year. The r eestruturação penalized results, which were negative by 249.4 million euros. Were the worst numbers in all the major banks in the country.