Bondholders in Spain's Banco de Valencia to suffer 90 pct loss
MADRID Feb 11 (Reuters) - Holders of junior debt instruments such as preference shares and subordinated debt in Spain's nationalised bank Banco de Valencia will suffer losses ranging from 85 percent to 90 percent, the country's bank restructuring fund, FROB, said on Monday.
Banco de Valencia was one of the lenders hardest hit by the bursting of a property bubble in Spain in 2008.
The FROB, which had to inject 5.5 billion euros into the bank, said in November it would sell the entity to the country's third biggest lender, Caixabank, for the nominal fee of one euro.
"The important losses are justified in order to ensure a fair share of the restructuring and resolving costs and to reduce the cost of public aid," the FROB said in a statement. (Reporting by Julien Toyer; Editing by Steve Orlofsky)
- White House reverses, says Obama met uncle and lived with him during law school
- South Africans, some fearful, wake to life without Mandela |
- U.S. television, Twitter, alive with new version of 'Sound of Music'
- RPT-UPDATE 1-Ford leans on global Mustang to burnish overseas image
- Ford leans on global Mustang to burnish overseas image