MADRID—Banco Popular Español SA will launch a €2.5 billion ($2.8 billion) share sale in an effort to ease investor concerns about its massive pile of soured property loans. Banco Popular, one of Spain’s weakest major lenders, said Thursday it will issue around 2 billion shares at €1.25 each to boost provisions for losses on real-estate loans and assets. The bank’s stock closed at €2.36 on Wednesday. The sale will be a rights issue,...
Shares in Spain 's Banco Popular has plunged after it announced it was to launch a € 2.8bn ($ 2.5bn ) share sale as it looks to ease investor concerns over its huge pile of bad property loans. The sale will be a rights issue with the shares offered to existing shareholders at a discount. Banco Popular woes are a result of an accumulation millions of foreclosed homes and millions -finished property developments after issuing loans to property developers and home buyers during Spain ’s building frenzy.