29 May 2020
- The assets of the deposited funds amount to approximately 26 billion
- Shareholders in Bankia's pension and investment funds will have an independent depositary as an additional guarantee in the management of their assets
- The transfer price is 170 million euros plus variable target-based charges
- The operation is scheduled to close before the end of this financial year, once the required authorisations have been obtained
Bankia has reached an agreement with Cecabank to transfer its activity as an institutional depositary of investment funds, SICAVs and pension funds, with a total volume of 26 billion euros. This amount will bring the total assets deposited in Cecabank to over 160 billion euros. This solidifies its consolidating position on the Spanish depositary market.
Separation of management and institutional depositary
This decision means that Bankia adopts the general trend of separating its depository activity from marketing and management. This allows it to provide greater security for shareholders in investment and pension funds, and to meet the best market standards.
Bankia will charge 170 million euros for this transfer. Additional charges may be added to this amount throughout the duration of the contract depending on whether certain objectives of the business plan are fulfilled.
The agreement provides that Cecabank will manage Bankia's institutional depositary business for a period of 10 years.
Cecabank the leading depositary bank
The operation is scheduled to close at some point during this financial year, once the required authorisations have been obtained.
“At Bankia, we are pleased to announce this agreement with a leading partner in the depositary business like Cecabank, which last year was Awarded the Best Spanish Custodian Bank for the third consecutive year”, says the Assistant Managing Director of Asset Management and Investees at Bankia, Fernando Sobrini.
With this operation, Sobrini adds, “Bankia aligns itself with the best practices in the sector. These practices recommend separating depositary and management activities into different groups. This way, we focus on asset management, a business in which we have over 30 years of experience and where can offer a differential service to our customers”.
José María Méndez, Managing Director of Cecabank, considers that “this operation is part of our strategic approach to establishing long-term relationships with our customers. Our contribution is based on high specialisation in an increasingly demanding and regulated activity, and on independence. This is possible because Cecabank does not provide retail services or carry out third-party asset management activity".
