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CaixaBank Surges as Bond Sales Ease Debt Concern: Madrid Mover

January 09, 2013

CaixaBank SA (CABK) and Banco Popular Espanol SA (POP) jumped in Madrid trading as bond sales signaled that borrowing conditions are easing.

CaixaBank climbed as much as 6.8 percent, the most on Europe’s benchmark Stoxx 600 Banks Index. (SX7P) It rose 6.5 percent to 3.00 euros at 11:53 a.m. Popular advanced 5.4 percent to 0.74 euros, the highest level since October.

Popular sold 750 million euros ($981 million) of 30-month senior unsecured bonds yesterday to yield 4.125 percent, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak on the matter. Barcelona-based CaixaBank is marketing three-year senior, unsecured debt today, according to a person with knowledge of the plan.

The renewed ability of Spanish banks, whose combined net borrowings from the European Central Bank run to 341 billion euros, to tap wholesale debt markets is a sign that their funding stresses are easing, said Juan Pablo Lopez, an analyst at Espirito Santo Investment Bank in Madrid.

“In the absence of other reasons for the gains, it’s positive,” said Lopez. “It always helps when they show they can issue debt.”

To contact the reporter on this story: Charles Penty in Madrid at

To contact the editor responsible for this story: Frank Connelly at

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