Liberbank’s capital increase: connecting the dots

In a context of a €500 million capital increase, some Mexican investors are to purchase about 8% of Liberbank’s shares. After growing by 63% since it started listing in the Madrid stock Exchange just one year ago, the entity currently holds a dominant position in the origin regions of the four “seed” savings banks, having more than 25% of credits and deposits. Liberbank’s efficiency ratio of 48% is one of highest within the national financial landscape. The bank was able to turn its 2012’s losses of € 1.8 bn into profits of 48 million in 2013.

Liberbank is the combination of Cajastur, Caja Castilla- La Mancha, Caja de Extremadura and Caja Cantabria. It was born with total assets of €53.2 bn, as well as 1,339 offices and 6,838 employees.

Furthermore, Spanish Treasury issued public debt again on Tuesday. Amidst fears of an eventual bubble affecting the EU debt markets- “bubbles do not exist until they burst,” reminded The Corner analyst Francisco López- Spain’s short-term debt achieved beat again expectations by selling €3.5 bn of 3-month and 9-month bills at a price lower and higher, respectively, than last issuances. The public Treasury has already reached its gross goal of 35.77% for short-term debt issues. In two years, Spain will retake its medium and long term auctions with the objective of selling €3.5 bn in bonds holding a maturity of 5 and 10 and 10 years.