How we bought our portfolio
We acquired loans and properties valued at €50,781 million from the former savings banks that were bailed out by the State. This value was set by the Bank of Spain after applying a discount of approximately 50%. Therefore, although the net value of the portfolio transferred to us was €107,000 million, the final price was almost half that.
Given that we did not have the liquidity to pay the banks for their assets, we issued senior debt guaranteed by the State. We then provided the savings banks with bonds that could subsequently be exchanged at the ECB. This was a key step in cleaning up the Spanish financial sector, as it provided the rescued financial institutions with liquidity.
Our business is based on generating sufficient revenues via the sale of our loans and properties in order to repay the debt and the associated interest. By doing this, we comply with our divestment mandate, maintaining the financial structure of the company, without needing to resort to the State guarantee, i.e. avoiding having to use any public funds. This is our core commitment.