Banco CEISS, a Spanish lender formed from the merger of two savings banks, was given a negative valuation of 288 million euros ($385 million) that will serve as the basis for receiving bailout aid.
The valuation was fixed based on estimates by three independent experts, Spain’s bank rescue fund, known as FROB, said in a statement today posted on the Bank of Spain’s website.
The European Commission approved restructuring plans for four Spanish lenders including CEISS in December as part of a bailout of about 40 billion euros for the country’s banking system.
Under the plan agreed for CEISS, Spain committed to sell the lender, which will have 604 million euros of capital needs covered by public funds under a second 1.87 billion-euro portion of Spain’s banking bailout. Spain has already taken 37 billion euros of bailout money to recapitalize four nationalized banks including the Bankia group and Catalunya Banc.
The bank rescue fund also published valuations for the other three banks whose restructuring plans received European approval in December.
The included Grupo Caja3, which was valued at 370 million euros, Banco Mare Nostrum valued at 569 million euros and Liberbank valued at 1.11 billion euros, the fund said. Another lender, Banco Gallego, was given a negative valuation of 150 million euros.
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