Bankia could sell EUR 1bn in stock and issue EUR 500m in convertible bonds
Spain's Fund for Orderly Banking Restructuring (FROB) has intensified talks about a potential Bankia stake sale, Expansion said. The government has not made a decision yet.
FROB holds 61% of Bankia.
The bonds to be issued may be mandatorily convertible, which demand a higher coupon, or give investors the option of a voluntary conversion, with a 0% coupon, the report said.
On 26 February FROB sold 7.5% of Bankia for EUR 1.356bn.
Minister for the Economy Luis de Guindos has acknowledged plans for a possible Bankia stake sale in mid-October.
Goldman Sachs is advising the government on Bankia's divestiture strategy, while Rothschild is its tactical adviser, the Spanish-language report added.
Source Expansion