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Banco Espirito Santo found little interest for a subordinated-for-senior debt exchange offer last week but is understood to be looking at further liability management exercises following the latest stress test results.
Investors tendered [Euro]149.1m of subordinated bonds for its exchange offer, the bank said on July 15. The three bonds totalled [Euro]1.6bn when they were issued but had since been partially bought back in previous exercises.
In stress test disclosures last week, BES said it intended to add 10bp to its core capital ratio by the end of the year through a buyback of hybrid instruments. Similarly, Banco Comercial Portugues, and Caixa Geral de Depositos said in their disclosures that they intended to launch liability management exercises to boost their capital ratios.
One liability management specialist...