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Banco Espirito Santo SA (BES), Portugal’s biggest publicly traded bank, rose to the highest level in almost a year as high demand for its bonds signaled borrowing conditions are improving for the bailed-out country.
Espirito Santo advanced as much as 4.6 percent to 1.04 euros, the highest price since February last year. The stock gained 3.4 percent to 1.03 euros at 11:43 a.m. in Lisbon, giving the company a market value of 4.13 billion euros ($5.39 billion).
The bank sold 500 million euros of five-year bonds yesterday in an operation that was six times oversubscribed, Chief Financial Officer Amilcar Morais Pires said in an interview. Spanish lender Banco Popular Espanol SA (POP) sold 750 million euros of 30-month bonds yesterday, according to a person familiar with the matter, who asked not to be named because they’re not authorized to speak on the matter.
The impact of the sale was “positive,” Banco BPI (BPI) analyst Carlos Peixoto said in a research note today. “This is another signal of the progressive reopening of the wholesale funding markets to both Portuguese and Spanish banks.”
Banco BPI SA, Portugal’s fifth-biggest bank, gained 6.5 percent to 1.14 euros and Banco Comercial Portugues SA (BCP), the country’s second-largest publicly traded lender, rose 1.3 percent to 8.1 cents.
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