Chinese leading race to the New Bank
The Chinese have always been favorite, first because of its financial strength, hard to match
The New Bank will be in Chinese hands. The sale will yield more than 4 billion euros and is being discussed between the rival Anbang Insurance and Fosun International, according to a report in the Financial Times, citing several sources close to the process.
This business, according to the reference newspaper, shows the growing optimism about the future of the Portuguese economy, which grew 0.9% in 2014 after a consecutive decrease over three years. The Bank of Portugal expects GDP to grow 1.7% this year and reach 2% in 2017.
In addition to the Chinese Anbang and Fosun, three entities submitted bids to buy the New Bank:. The Spanish Santander and yet the American Apollo and Cerberus have been the pointed names
The Chinese have always been favorite, first because of its financial strength, hard to match. Then, because the proposals are interesting from the standpoint of strategic development, consider analysts and sources close to the process.
The largest financial investment by a Chinese group in Europe so far was worth 3 billion dollars, the China Development Bank, the purchase of 2.6% of Barclays Capital, in 2007, According says the Financial Times, citing Dealogic. This means that the purchase of the New Bank would represent the largest Chinese investment in Europe made today.
If the proposal exceed 4 billion euros, this also represent a relief to the Portuguese authorities, since the rescue has cost 4.9 billion injected by the resolution fund, of which 3.9 billion came from State loan and the remainder is composed of resource that the fund already owned and a loan of EUR 700 million of the participating banks.
The bill to be paid by banks will depend on the value of the sale of the New Bank. But the deadline for payment of the slice is left may be extended for 20 years.
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