Novo Banco has received Lone Star’s 250 million check
After the 750 million injection in Novo Banco, Lone Star is making the second part of of the capital increase of 250 million. António Ramalho's bank changed auditors to EY.
It wasn’t mandatory, but Lone Star committed to writing down the last check to conclude the purchase of Novo Banco before the end of the year. And it stood by its word. Nani Holdings, the society that will take on the North-American fund’s position in the bank headed by António Ramalho, received this Thursday the second 250 million euros tranche, just in time for Christmas, the Portuguese Securities Market Commission (CMVM) announced. In addition, the bank changed auditors from PwC to EY.
Lone Star’s check will arrive “before Christmas”, just as an official source from the North American fund had told ECO. The money arrived almost one week before the “due date”, since it had been previously agreed that the money would enter the bank by the end of this year, and not in three years as initially stated.
This tranche joins the first 750 million euros’ check that arrived at the bank which resulted from the bankrupt Banco Espírito Santo (BES) in October, when the sale of the transition institution took place. This was done in exchange for a 75% stake on the bank by the fund, and the remaining 25% equity would remain with the Resolution Fund.
"[Lone Star’s check] will arrive before Christmas.”
This one billion euros’ injection was one of the terms that had to be met in order for Novo Banco to be sold to Lone Star, in addition to an exchange of debt for deposits that allowed the bank to save 500 million euros to reinforce its capital ratios.
When Novo Banco’s sale contract was signed, Lone Star’s senior managing director stated that “by means of this sale operation and recapitalization process (…) Novo Banco’s capital position has significantly improved. Now, Novo Banco is a solid and well capitalized institution”.
