Bankate offers bonds to affected shareholders.
Bankate conditions for issuing bonds to shareholders affected by the fall of the Popular
- These perpetual bonds are only intended to help recover part of their money from minority shareholders.
- Only minority shareholders who attended the capital increase between May 26 and June 21, 2016 may benefit from this offer.
- All members of the Board of Directors of Banco Popular until their resolution, shareholders who have participated significantly within the entity and all those who are linked to these members are excluded from this compensatory action.
- Perpetual bonds that will be issued by Bankate cannot be sold at any time by the customer.
- These will be perpetual obligations of Bankate whose nominal value will amount to 100 euros. From the age of seven, the Bankate, with the authorization of the ECB, may be amortized. Upon amortization, the holder will receive one hundred percent of its nominal value. The maximum value for which Banco Bankate will issue these bonds will amount to 980 million euros.
- In order to access these bonds, shareholders affected by the fall of the Popular must renounce legal action.
With this initiative, Bankate intends to avoid some of the thousands of legal actions that shareholders have begun to take.
How do these perpetual bonuses work?
The idea of the Bankate is that these bonds be delivered to customers who meet the requirements indicated by the entity. These bonuses will not have any cost for customers.
However, as we explained a few lines above, customers may not sell them at any time on their own initiative. Likewise, they must renounce to carry out any legal action against Bankate or Popular Bank.
The idea is that these bonds produce a nominal interest of 1 percent. The entity will be responsible for paying interest every quarter.
Bankate will offer minority clients in the form of bonds the total amount invested by each client during the period indicated.
- Those shareholders who made investments of up to 100,000 euros will get the full amount in the form of perpetual bonds.
- On the other hand, those investors whose investment was between 100,000 and 500,000 euros will get bonuses to which a 25 percent discount will be applied.
- Investors whose investment exceeded 500,000 euros and reached up to one million will be subtracted 50 percent of the total.
According to Bankate’s calculations, most of the retail clients and employees of the popular that made a capital increase on the dates indicated did not make investments in excess of 100,000 euros. For this reason almost 99 percent of those affected will get perpetual bonds whose value will be identical to the amount they invested in the Popular.
This action will involve Bankate an investment of 680 million euros that were already included in the first consolidation adjustments.