Banco Espirito Santo Bonds Sink to Record After Stake Sold
This article is for subscribers only.
Banco Espirito Santo SA’s subordinated bonds fell to a record after a parent company said it had to sell 4.99 percent of the lender to meet debt commitments.
Espirito Santo Financial Group said it reduced its stake in the Lisbon-based bank to 20.1 percent to meet a margin call on a loan taken out during the bank’s 1.04 billion-euro ($1.42 billion) rights offering in June. Banco Espirito Santo’s 7.125 percent notes due November 2023 fell 2.9 cents to 84 cents on the euro to yield 9.58 percent, according to data compiled by Bloomberg.