You are on page 1of 2

www.bportugal.

pt

Bank and the Eurosystem > Press releases

Banco de Portugal approves decisions that complete the resolution


measure applied to BES

1.The Board of Directors of Banco de Portugal approved today a number of decisions that complete the
resolution measure applied to Banco Esprito Santo, S.A..
2.Based on evidence that the economic and financial situation of Novo Banco, S.A. has been negatively affected
since the date of its settingup by additional losses which are referable to events predating the resolution date,
Banco de Portugal decided to confer again on BES the responsibility for certain issues of nonsubordinated bonds
issued by the latter and intended for institutional investors, identified in the annex.
The nominal amount of the bonds retransferred to Banco Esprito Santo, S.A. totals 1,941 million euros and
corresponds to a balancesheet amount of 1,985 million euros. These bonds were originally issued by Banco
Esprito Santo, S.A. and were specifically placed with qualified investors, with a minimum denomination of 100
thousand euros.
The original resolution decision expressly provides that Banco de Portugal, as the Resolution Authority, in use of
its powers, may at any time retransfer assets and liabilities between Banco Esprito Santo, S.A. and Novo Banco,
S.A..
This measure is necessary to ensure that, as stipulated in the resolution regime, the losses of Banco Esprito
Santo, S.A. are absorbed by this institutions shareholders and creditors and not by the resolution fund or the
taxpayers.
The selection of the abovementioned bonds was based on public interest and aimed to safeguard financial
stability and ensure compliance with the purposes of the resolution measure applied to Banco Esprito Santo, S.A..

This measure protects all depositors of Novo Banco, the creditors for services provided and other categories of
unsecured creditors.
Also, the measure does not affect bonds covered by agreements concluded between Novo Banco and its
customers, nor issued bonds not included in the annex.
This measure has a positive impact, in net terms, on the equity of Novo Banco of approximately 1,985 million
euros.
3.In addition to the measure mentioned above, Banco de Portugal made a final adjustment to the perimeter of
the assets, liabilities, offbalancesheet items and assets under management transferred to Novo Banco, namely
including:
a.Clarification that no liabilities have been transferred to Novo Banco that were contingent or unknown
on the date the resolution measure was applied to Banco Esprito Santo, S.A.;

b.Retransfer to Banco Esprito Santo, S.A. of the shareholding in BES Finance, which is necessary to ensure
full compliance with and application of the resolution measure as regards the nontransfer to Novo Banco
of subordinated debt instruments issued by Banco Esprito Santo, S.A.;
c.Clarification that it is the Resolution Funds responsibility, upon the fulfilment of certain conditions, to
make neutral for Novo Banco through an appropriate measure potential negative effects of future
decisions, resulting from the resolution process and giving rise to liabilities or contingencies.

4.These decisions are the final and definitive adjustment of the perimeter of the assets, liabilities, offbalance
sheet items and assets under management transferred to Novo Banco, which is deemed definitively fixed.
As a consequence, Banco de Portugal will ask the European Central Bank to withdraw the authorisation of Banco
Esprito Santo, S.A., starting the judicial liquidation proceedings.
5.These decisions enable Novo Banco S.A. to focus exclusively on the implementation of its strategic plan
submitted in due time.
These developments, as well as the recent agreement with the European Commission on the commitments to be
applied to Novo Banco, remove uncertainties and make a positive contribution to the relaunch of the sale process
of the Resolution Funds participation in the share capital of Novo Banco, S.A. in January 2016.

Annex
Bonds retransmitted from Novo Banco to BES
ISIN

DESCRIPTION

Currency

Typo

PTBEQBOM0010

SeniorbondsNB6.875%,mat.July2016

EUR

Senior

PTBENIOM0016

SeniorbondsNB6.9%mat.June2024

EUR

Senior

PTBENJOM0015

SeniorbondsNB4.75%mat.January2018

EUR

Senior

PTBENKOM0012

SeniorbondsNB4.0%mat.January2019

EUR

Senior

PTBEQKOM0019

SeniorbondsNB2.625%mat.May2017

EUR

Senior

Lisbon, 29December 2015

RELATED INFORMATION

Frequently Asked Questions about BES

Banco de Portugal 2009