The bank’s priority is to exchange the senior bonds with an indicative minimum value of €250 million, the additional in cash for bondholders whose demand outstrips supply and “floating the remaining bonds on the market with a minimum amount of €100 million.

Swapping senior bonds for subordinated debt instruments and the acquisition of these bonds will let Novo Banco improve its capital structure, optimise its total capital ratios and adjust its funding structure with a reduction of interest changes, the bank said.