Sareb raises 100% of its start-up capital, the majority through private shareholders, including foreign investors

Sareb has raised 100% of its initial share capital, with 14 new investors acquiring stakes, enabling Sareb to kick off the first phase with a majority of private shareholders (55%) and less government investment (45%). Two foreign banks (Deutsche Bank and Barclays Bank), eight Spanish banks (Ibercaja, Bankinter, Unicaja, Cajamar, Caja Laboral, Banca March, Cecabank and Banco Cooperativo Español) and four insurance companies (Mapfre, Mutua Madrileña, Catalana Occidente and Axa) have become Sareb shareholders.

The latest investments in Sareb’s share capital made by its new shareholders mean that practically all the main financial institutions and insurance groups in Spain now hold a stake in the company. It also means that Sareb has hit its targets of having the majority of its share capital held by private shareholders and counting international investors among its shareholders. In addition, foreign institutions have shown growing interest in acquiring stakes in the company, as well as in participating in managing and, in the future, selling the assets.

In total, Sareb’s private shareholders have contributed €524mn in this initial phase, while the Spanish bank rescue fund (FROB) has put forward a further €431mn. These amounts are scheduled to increase in the next phase. In the next few weeks, the private companies and institutions listed above, along with other investors, are to subscribe to subordinated debt issued by Sareb, and will provide the resources needed to reach the maximum target of €3.8bn in own funds anticipated for the first phase, comprising 25% share capital and 75% subordinated debt.

Before the end of 2012, Sareb – which will manage around €55bn in assets – will acquire the assets from the four Group 1 banks (Bankia, Catalunya Bank, Novagalicia Banco-Banco Gallego and Banco de Valencia) for an estimated €40bn, in line with the restructuring plans approved by the European Commission on 28 November 2012.

In the second phase during the first quarter of 2013, Sareb will participate in the asset transfer by contributing Group 2 banks. The company plans to undertake another capital increase and issue subordinated debt, to be subscribed to by existing shareholders and other interested investors, for this transaction.

Having achieved 100% of the share capital required for the first phase, Sareb is ready to tackle its targets. Its main goal is to maximise the value of the assets by managing and selling them in accordance with their specific nature.

Sareb intends to consider all sales avenues and available channels, including retail, even though this option may not be the most used of the choices on hand.

Sareb aims to be an agile organisation, and will be staffed by only those personnel that are absolutely necessary, so as to maximise available resources.

Board of Directors

In addition to Sareb’s success in reaching its initial share capital target, nine directors have also been appointed to Sareb’s Board of Directors who, together with the six directors appointed last week, will make up the Board of Directors of the company (Sociedad de Gestión de Activos procedentes de la Reestructuración Bancaria, S.A.). After ratification by the General Meeting, the Board of Directors will be chaired by Belén Romana, with Walter de Luna as General Manager and Board member, and Rodolfo Martín Villa, Ana María Sánchez Trujillo, José Ramón Álvarez-Rendueles, Emiliano López Achurra, Javier Trillo Garrigues, Celestino Pardo, Luis Sánchez-Merlo, Remigio Iglesias, Antonio Massanell, Francisco Sancha, Miquel Montes, Antonio Trueba and José Ramón Montserrat as Board members. Oscar García Maceiras will be the Board secretary (non-member).

The Board has created the Remuneration and Appointments Committee and the Audit Committee, to be chaired by Javier Trillo Garrigues and José Ramón Álvarez- Rendueles, respectively.