BSPress

Banco Sabadell launches bond tender offer

Banco Sabadell today launched a discretionary tender for asset-backed securities (ABSs) issued between 2004 and 2007; the offer is addressed to institutional investors.

The maximum nominal amount initially covered by the tender is 200 million euro, although it may vary depending on the offers and ongoing developments in the process.

The minimum purchase price is between 55% and 92% of the nominal value in practically all the issues. The offer expires on 11 May and will be settled on 22 May.

This transaction is part of the bank's active liability management policy and will contribute to providing liquidity to the bondholders while also having a positive impact on the bank's capital.

 

Banco Sabadell obtained net profit of Euros 80.0 million and improved all business margins in 1Q12

Net profit, which outstripped market expectations, was 5.0% lower than in 1Q11 and includes provisions and writedowns amounting to Euros 293.4 million.

• Net interest income increased by 7.4% with respect to 1Q11 and income before provisions improved by 8.5% year-on-year.
  
• The core capital ratio was 11.88% (9.37% at 31 March 2011) and the Tier 1 ratio was 11.36% (10.51% at 31 March 2011), positioning Banco Sabadell among the best capitalised banks in Europe.
  
• The pace of new customer acquisition increased by 13.5% in the case of individuals and 36.3% in the case of companies, with respect to 1Q11, in line with the targets of the CREA plan.

The performance of Banco Sabadell and its group in the first three months of 2012 outstripped market consensus expectations, maintaining steady growth in earnings in a context of uncertainty and macroeconomic difficulties.

In 1Q12, attributed net profit amounted to Euros 80.0 million (i.e. a decline of 5.0% compared with the first quarter of 2011), after recognising Euros 293.4 million in provisions and write-offs for real estate and financial assets.

The bank's performance in the first quarter of 2012 was characterised by very positive results from the ordinary business and strict cost control, in accordance with the objectives of the 2011-2013 CREA plan, together with efforts to strengthen its already-sound capital and liquidity position.

Banco Sabadell increased capital in the quarter by 65.3% through a tender for preference shares in January and an equity issue in March. As a result, own funds amounted to Euros 7,901.8 million at 31 March 2012. The core capital ratio was 11.88% (9.37% in March 2011) and the Tier 1 capital ratio was 11.36% (10.51% in March 2011).

Banco Sabadell opens office in New York

Banco Sabadell opens a representative office in the Rockefeller Center in Manhattan, New York. Following approval by New York State authorities on 28 March the new office is now fully operational (thanks to Banco Sabadell’s existing structure in Miami), officially opening its doors on 23 April. In May an official inauguration event will be attended by Josep Oliu, President of Banco Sabadell, several economic authorities, and Spanish business people with US interests.

The opening of its New York office represents one more step in the bank’s international strategy set out in its CREA master plan. The new office will equip Banco Sabadell to capture business opportunities in project financing in parallel to the office’s other work with local authorities, major global financial operators and its own customers.

Banco Sabadell sells its stake in BanBajío (Mexico) and obtains a net capital gain of 19.9 million Euros

Banco Sabadell has agreed to sell its entire 20% stake in Banco del Bajio to Temasek and a group of Bajio’s current shareholders, for a total amount of 156 million euros. The transaction represents a net total gain of 19.9 million euros and enables Banco Sabadell to increase its core capital by 1.8 basis points.

This transaction is subject to appropriate regulatory approvals.

Banco Sabadell acquired 10% of Banco del Bajio in 1998 and increased its participation to 20% in 2005, an ownership that has remained stable to date. Banco del Bajio is now the eighth institution of the Mexican banking system.

Banco Sabadell will keep its representative office in Mexico, opened in 1990, which will continue to provide advisory services to Spanish companies with interests in Mexico. In the same geographical area, Banco Sabadell also has a branch in Miami, a bank subsidiary in Florida: Sabadell United Bank, with a network of 26 offices and three Representative Offices: Brazil, Venezuela and the Dominican Republic.

About Banco Sabadell

Banco Sabadell (IBEX: SAB) is, after the acquisition of Banco CAM, the fifth largest listed bank by assets in Spain and has more than 130 years of experience in corporate and commercial banking. Its commercial network now exceeds 2,200 offices in Spain and also has presence in 18 other countries through branches, representative offices, subsidiaries and affiliates, especially in the United States, China, India, Middle East, Africa and Latin America.

The capital ratios of Banco Sabadell are among the highest in the European banking sector. Its total assets exceed 166,000 million and has about 17,000 employees. It was the first Spanish bank to achieve ISO 9001 certification for all its global processes and the Gold Seal from the European Foundation for Quality Management (EFQM).

About Temasek

Incorporated in 1974, Temasek is an Asian investment company headquartered in Singapore. Supported by 12 affiliates and offices in Asia and Latin America, Temasek owns a diversified S$193 billion (US$153 billion) portfolio as of March 31, 2011, concentrated principally in Singapore, Asia, and growth markets.

Temasek's investment themes center on Transforming Economies, Growing Middle Income Populations, Deepening Comparative Advantages, and Emerging Champions. Its portfolio covers a broad spectrum of industries: financial services; transportation, logistics, and industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources.

Total shareholder return for Temasek since its inception in 1974 has been a healthy 17%, compounded annually. It has a corporate credit rating of AAA/Aaa from rating agencies Standard & Poor's and Moody's, respectively.

For additional information, visit www.temasek.com.sg

Banco Sabadell successfully concludes rights issue, which was 100% subscribed

Banco Sabadell today concluded the rights issue approved by the Shareholders' Meeting, since the periods for preferential allocation (ended on 15 March) and for the allocation of additional shares have concluded.

A total of 683,387,430 newly-issued ordinary shares were subscribed for in the preferential tranche, representing 99.95% of the capital increase amount, and another 2,312,513,713 shares were applied for, with the result that demand exceeded supply 4.4-fold.