BlackRock and Fidelity are both looking into investing in one of the new Spanish savings banks carved out of the country’s troubled banking sector, according to Expansion.
Bankia, the bank made from Caja Madrid, Bancaja, and five other Spanish cajas, or local savings banks, is their investment target.
The bank is targeting a €3 billion IPO, and while BlackRock, Fidelity, and other unnamed firms are interested, they are also concerned about the state of Bankia’s balance sheet, according to Expansion.
The worry is that Bankia may not be priced at a discount relative to future losses it may incur as a result of Spain’s continued economic weakness and troubled real estate sector.
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