(Updates with bond size in first paragraph.)
Oct. 13 (Bloomberg) -- Spain’s bank-rescue fund sold 1.4 billion euros of bonds ($1.9 billion) in its first issue since it agreed to inject 7.6 billion euros into failed savings bank Caja de Ahorros del Mediterraneo and three other lenders.
Fondo de Reestructuracion Ordenada Bancaria’s two-year bonds were priced to yield 92 basis points more than Spanish government debt, according to data compiled by Bloomberg. FROB, as the fund is known, raised 2.2 billion euros in July from five-year bonds, according to data compiled by Bloomberg.
The Bank of Spain said Sept. 30 it will take over banks run by CaixaCatalunya, Novacaixagalicia and Unnim Banc after the lenders failed to boost capital reserves with private-sector investment. The central bank seized Caja de Ahorros del Mediterraneo in July, and FROB agreed to inject capital worth 2.8 billion euros.
Bankia SA, Barclays Capital, Credit Agricole CIB, Banco Santander SA and Societe Generale SA managed today’s bond sale.
--With assistance from Hannah Benjamin in London. Editors: Andrew Reierson, Michael Shanahan
To contact the reporter on this story: Esteban Duarte in Madrid at firstname.lastname@example.org Ben Martin at email@example.com
To contact the editor responsible for this story Paul Armstrong at Parmstrong10@bloomberg.net