Santander, CaixaBank Said to Be Among Top Abengoa Lenders

  • Spanish renewable-energy company to seek creditor protection
  • Bank shares drop in Madrid on concern they will face losses

Banco Santander SA, CaixaBank SA and Banco de Sabadell SA are among the largest bank lenders to Abengoa SA, the Spanish renewable-energy company that’s seeking protection from creditors.

Abengoa has total bank facilities of about 20 billion euros ($21.2 billion) including working capital, project-finance debt and loans, a document compiled by one of the creditors and seen by Bloomberg shows. Santander, Spain’s largest bank, has the largest exposure at 1.5 billion euros, with 125 million euros in corporate loans and 1 billion euros in working capital, the document shows.

Seville-based Abengoa was counting on a new shareholder to invest in the firm after months of negotiations with its creditors. Gonvarri Corporacion Financiera said Wednesday it is backing out of the deal, forcing the company to seek protection from creditors.

Citigroup Inc. and HSBC Holdings Plc are also among the company’s lenders, the document shows. CaixaBank and Banco de Sabadell have each provided Abengoa with financings of more than 300 million euros, the document shows. Bankia SA and Banco Popular Espanol SA are also among the 10 largest Abengoa bank lenders, people with knowledge of the matter said.

Officials from the banks declined to comment.

Spanish banking shares tumbled in Madrid on concerns Abengoa’s failure may lead to losses. Banco Popular shares dropped as much as 6.4 percent and closed 2.5 percent lower in Madrid, while Banco Santander closed 2 percent lower after falling as much as 4.6 percent. They were among the worst performers of the benchmark Stoxx Europe 600 Banks Index, which gained 0.7 percent.

The impact should be manageable for banks, analysts at N+1, a Spanish investment bank, said in a note to clients. It estimates that the ratio of non-performing loans to total debt at Spanish lenders could increase by about 30 basis points on average. Bad loans accounted for about 10.7 percent of total loans at Spanish lenders as of September, Bank of Spain data show, down from 11.4 percent in May.

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