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Bankia docked from Spain's blue-chip index
December 27, 2012 / 5:05 PM / in 5 years

Bankia docked from Spain's blue-chip index

MADRID, Dec 27 (Reuters) - Spanish state-rescued lender Bankia will be excluded from the country’s blue-chip index as of January 2 until the results of a recapitalisation are clear, the Spanish stock exchange operator said on Thursday.

A cash injection from Europe into BFA-Bankia, due to take place before the end of the year, will be done through the transfer of 18 billion euros ($23.8 billion) of paper issued by the European Stability Mechanism.

Bankia will then issue 10.7 billion euros of convertible bonds, or Cocos, which will be fully subscribed by its state-owned parent company BFA.

“Once the contingency convertible bonds are converted into ordinary shares and the official outcome of the capital increase has been made public, appropriate measures will be taken and published by the (stock exchange) committee,” the operator said on Thursday.

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