Oitante, set up to manage assets at the time of the Banif ruling, has already repaid the entire €746m bond loan provided by Santander. And it was done more than three years ahead of schedule, according to a statement released by the institution.
Oitante, SA (“Oitante”) announces that it has successfully completed the full repayment of its €746 million bond issue entered into at the time of its incorporation on 20 December 2015 in accordance with the decision of Banif. completes the full repayment of its balance. debt list,” writes the organization, chaired by Miguel Barbosa.
The last tranche of Santander’s loan financing was repaid “on 30 June in the amount of 18 million euros”. With this transaction, Octant postponed “by 3 and a half years the maturity of the bond issue, originally scheduled for December 2025.” “The interest savings resulting from the early repayment of the bonded loan amounted to more than 110 million euros between 2016 and 2022,” says the organization, chaired by Miguel Barbosa, highlighting that over the life of the loan, the car “paid a total of more than 62 million euros in interest “.
“It is with great pride and a sense of accomplishment that Oitante is fulfilling one of its main tasks, the full payment of its debt,” he emphasizes in the same statement. He adds that “it is especially important for the Oitante team that they were able to develop and implement an ambitious strategic plan that allowed both the Resolution Fund and the Portuguese state (taxpayer) to be released from the guarantees and counter-guarantees originally granted.” .
Oitante was created in December 2015 by Banif to manage the toxic assets of the bank founded by Horacio Roque. Santander loan was guaranteed by the Permission Fund, Oitante’s sole shareholder, and counter-guaranteed by the state.
Satisfied Bank of Portugal expects Resolution Fund to return $489 million
Banco de Portugal was satisfied with the payment of the entire loan to Santander Oitante. “In its capacity as the national dispute resolution body [o regulador] welcomes the completion of the Oitante debt repayment process, which is taking place more than three years before the due date, as a moment of paramount importance in the banif settlement process,” the supervisory authority said in a statement.
“The Oitante bond issue made it possible to finance the transfer of Banif’s assets to this company and was therefore necessary to implement the resolution and thus prevent the disorderly liquidation of this bank,” emphasizes the organization, headed by Mario Centeno.
Banco de Portugal also explains that “early repayment of Oitante’s debt terminates the liability of the Settlement Fund and the Portuguese State in respect of this debt”, in addition to “allowing significant financial savings and expecting to recover a significant portion of the debt”. €489 million allocated by the Resolution Fund in 2015 to fund the Banif Resolution.”
(News updated at 11:44 AM by Banco de Portugal)
