- Notes fall after report says BBVA set to sell Portugal assets
- Anbang, Apollo among potential buyers of BBVA unit, ABC says
Bonds of Novo Banco SA, the lender put up for sale by Portugal’s central bank, fell on investor concern that the potential takeover may be hindered by Banco Bilbao Vizcaya Argentaria SA’s reported plans to sell operations in the country.
BBVA has revived plans to exit Portugal, and its local assets may draw interest from Fosun International Ltd, Anbang Insurance Group Co. or investment fund Apollo Global Management LLC, Spanish newspaper ABC said on Tuesday. All three companies submitted offers for Novo Banco, a person familiar with the talks said earlier this month.
BBVA’s Portuguese assets “are much more attractive” than Novo Banco, said Roger Francis, a credit analyst at Mizuho International Plc in London. “It’s not hard to work out which one investors would want.”
Novo Banco’s 500 million euros ($560 million) of senior unsecured bonds due in January 2018 fell three cents to 93 cents, according to data compiled by Bloomberg. The 750 million euros of notes due a year later dropped 1.5 cents to 91 cents.
Fosun is not interested in buying BBVA’s Portuguese assets, according to an official at the Chinese company, who asked not to be named because of corporate policy. A Bank of Portugal official declined to comment.
The Portuguese central bank’s Resolution Fund is seeking to recoup some of the 4.9 billion euros invested in Novo Banco to rescue Banco Espirito Santo SA in August 2014. Most of the assets and deposits of Espirito Santo, once Portugal’s biggest bank by market value, were transferred to Novo Banco.