Shares in Spain 's Bank Popular SA 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,... 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 estimated millions of foreclosed homes and half - finished property developments after issuing loans to property developers and home buyers during Spain ’s building frenzy .
Shares in Spain 's Bank Popular SA 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 . Banco Popular woes are a result of an estimated millions of foreclosed homes and half - finished property developments after issuing loans to property developers and home buyers during Spain ’s building frenzy .