Monday, June 11, 2007

Spanish Banks Demand Realtor Inmobiliaria Colonial Pays More for Loan

(Bloomberg) -- Banks demanded that Inmobiliaria
Colonial SA pay more interest to borrow 7.2 billion euros ($9.7
billion) because of the risk Spain's second-largest developer
will be hurt by a slump in property prices.

Colonial will have to pay more than a 1.25 percentage-point
premium over inter-bank rates because underwriters led by
Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc
can't find enough loan investors, two people involved in the
negotiations said. Chairman Luis Portillo may have to repay part
of the five-year loan after three years, said one of the people.


Read more at Bloomberg Bonds News

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