• The sale will reduce the Group's doubtful loans by €766 million
  • The transaction is structured into two sub-portfolios of corporate debt secured by real estate and hotels

Bankia has signed the agreement to sell a portfolio of €772 million in loans secured by real estate and hotels, of which €766 million are classified as doubtful.

The sale will achieve a dual objective. Firstly it will reduce the level of non-performing assets by selling these doubtful loans, and secondly it will free up funds that can be used to provide new credit.

The portfolio has been divided into two blocks. The first consists of €421 million in financing to industrial companies, while the second is made up of €351 million in loans secured with hotels. The two sub-portfolios comprise a total of 279 operations.

The sale was carried out by means of a competitive process among leading institutional investors and financial institutions in order to maximise the price obtained for the portfolios.

The bank continues to make progress in its Strategic Plan 2012-2015, which includes a commitment to divest all non-core assets

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