Bankinter launches its capital increase without diluting equity, raising its EBA capital ratio to 10.6%

Tomorrow, Bankinter is set to launch a capital increase, approved at the last General Shareholders Meeting, with preferential allocation rights to be issued for each share currently held. Bank shareholders can sell these rights or purchase additional allocation rights on the secondary market for a 15-day period, after which the allotment of the new Bankinter shares will take place.

This capital increase will involve issuing and putting into circulation 313.22 million new ordinary shares, which will be freely awarded to the bank's shareholders on the basis of five new shares for every nine old shares.

The operation, representing 93.97 million euros, will be financed wholly from revaluation reserves, at no cost to shareholders. To be more specific, these are hidden reserves which Bankinter has accumulated in its balance since 2004, when its properties were revalued in compliance with Bank of Spain directives.

This issuing of fully paid shares, which will not dilute equity as far as current shareholders are concerned and which is complementary to the payment of the ordinary cash dividend, will allow Bankinter to further improve solvency levels. In fact, this increase will see Bankinter's EBA capital ratio rise by 40 basis points to stand at 10.6%, allowing the bank to face the future with real potential for growth. Bankinter will thus be able to consolidate its position as one of the most solvent operators in the Spanish banking sector, as confirmed in Oliver Wyman's September 2012 report.