MADRID Dec 27 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