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CORRECTED (OFFICIAL)-Bankia's bill for IPO losses to be 200 mln to 250 mln euros - EconMin
February 5, 2015 / 7:18 PM / 3 years ago

CORRECTED (OFFICIAL)-Bankia's bill for IPO losses to be 200 mln to 250 mln euros - EconMin

(Official correction to show that Bankia’s share of the compensation payment will be 200 to 250 million euros, not 600 million euros. A corrected story follows)

MADRID, Feb 5 (Reuters) - Spanish lender Bankia’s total bill for compensating shareholders who invested in its ill-fated public listing in 2011 will be capped at between 200 million and 250 million euros ($287.18 million), Spanish Economy Minister Luis de Guindos said on Thursday.

In an interview with Reuters, De Guindos also said that the final figure would be announced in coming days as part of a broader agreement on how the burden would be shared between the state-controlled bank and its parent company BFA.

“The distribution (of the compensation payment) will be made on the basis of who owns which percentage of the capital,” he said, adding that BFA, owned by Spain’s bank restructuring fund FROB, would take on 62 percent of the costs while Bankia would take on the remaining 38 percent.

Based on these figures, the maximum compensation outlay for Bankia would range between 200 million to 250 million euros.

“What’s important is who shoulders the first loss... The figure that we will give will be far below Bankia’s profit-generation capacity and will be a figure that removes all doubts.”

De Guindos, who oversees the FROB, also said that he was convinced the lender would manage to pay a dividend in 2015 and keep racing ahead of its recovery plan despite the charge. ($1 = 0.8705 euros) (Reporting by Julien Toyer and Sarah White; Editing by Elisabeth O‘Leary)

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