Lone Star and the Resolution Fund are negotiating the end of the Contingent Capitalization Agreement before 2025. A 50% pay-out would give 163 million euros in dividends to the Fund and the State.
Lone Star and the Resolution Fund (FdR) are negotiating the end of the Contingent Capitalization Agreement before 2025. The current capital ratio would allow it to distribute 50% of the profits from 2022 and 2023, which would give 85 million in dividends to the FdR and 78 million to the State. This is the news that makes the headlines this Friday in the printed edition of JE, which can now also be read on digital platforms.
The dividends that the Resolution Fund and the General Directorate of Treasury and Finance would receive if the end of the Contingent Capitalization Agreement were brought forward are the strongest argument for Lone Star to convince the Resolution Fund to reach an agreement for the early end of the mechanism of contingent capitalization (CCA) at Novobanco.
The accounts that Jornal Económico carried out, with the help of banking accounting experts, reveal that the current capital ratio would allow the distribution of 50% of the profits of 2022 and 50% of the profits of 2023. This means that the Resolution Fund would receive 85 million of euros in dividends from the bank and the DGTF (State) would receive 78 million euros. Currently, the American fund Lone Star holds 75% of Novobanco, while the Resolution Fund holds 13.04% and DGTF holds 11.96%.
The two public entities would receive, in dividends for the two years, 163 million euros, which is not insignificant for the Resolution Fund, which has to pay debt, and for the State, which needs revenue.
Remember that Novobanco closed the 2023 accounts with profits of 743.1 million euros, 32.5% above the 560.8 million recorded in 2022. Novobanco can then distribute 50% of the sum of the two, that is 651, 9 million euros.
Tags: State Resolution Fund earn million agreement Novobanco
