Shares in Spain's Banco Popular Espanol has plunged after it announced it was to launch a €2.5bn ($2.8bn) 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. The sale will be a rights issue,... In an announcement on Thursday, the bank said that it would sell up to 5.7m new shares, worth about €2.2bn, and raise funds by issuing bonds backed by those shares.
Shares in Spain's Banco Popular Espanol has plunged after it announced it was to launch a €2.5bn ($2.8bn) 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. In an announcement on Thursday, the bank said that it would sell up to 5.7m new shares, worth about €2.2bn, and raise funds by issuing bonds backed by those shares.