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4,465 billion euros of preference shares to be converted into capital for Bankia

 |  June 28, 2012

The European Commission has temporarily approved the conversion of preference shares into capital for Spain’s Bankia. The preference shares are for 4,465 billion euros, which will be converted into equity and a liquidity guarantee amounting to 19 billion euros. The conversion makes FROB, a Spanish banking restructuring fund, the sole owner of Bankia’s parent, BFA Group.

Spain will provide the Commission with a restructuring plan for Bankia within six months. It has also agreed not to pay out dividends or coupons on hybrid capital, unless legally required.

Full content: EC Press Release


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