The Management Company for Assets Arising from the Banking Sector Reorganisation (Sareb) has approved the proposal to convert EUR 2,170 million of subordinated debt. Via this operation, Sareb has met the capital requirements of the new accounting framework that came into effect last year.
The new accounting standards required that Sareb value its properties individually. After an intense valuation process, it was determined that the company should write-down a further EUR 2,044 million, in addition to the EUR 968 million set aside in the previous two financial years.
A few months ago, the company announced that it would address the losses created by this write-down using its own shareholder equity, without the need for additional capital input. In this regard, the Shareholders' Meeting approved the conversion of EUR 2,170 million subordinated debt into capital. After this operation, Sareb's shareholder equity structure comprises EUR 953 million capital and EUR 1,429 million of subordinated debt.
Board of Directors substitutions
The Shareholders' Meeting also approved the appointment of Javier García-Carranza as a Proprietary Board member on behalf of Banco Santander. García-Carranza is the Deputy Managing Director and Head of Restructuring, Real Estate, Investee Companies and Private Equity at Banco Santander.