BANCO Popular shares rose yesterday after Spain’s sixth biggest bank secured a €2.5bn (£2bn) capital increase, averting the need to seek state aid.
At a special meeting in Madrid on Saturday, large shareholders backed the plan, seen as a key test of Spanish banks’ ability to tap markets.
Shares rose around five per cent yesterday to trade around €1.20. One banker said the early trading “set a nice tone for people in the market to see”.
The lead banks on the issue are Deutsche, Bank of America Merrill Lynch, JP Morgan, Santander and UBS.
There was some consternation late last week when it emerged that Banco Popular had appointed STJ Advisors to the deal.
STJ brought in a competitive rights issue auction process which the banks objected to.