Spanish Investment Banks for Foreign Investors and Business Owners

8 August 2018

If you are a foreign national looking to invest in Spain, or if you are a business owner who wants to begin operations in this country

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If you are a foreign national looking to invest in Spain, or if you are a business owner who wants to begin operations in this country, two of your most important allies will be your legal team and your financial advisors. Spanish investment banks can open a wealth of opportunities for investors and business owners, while your attorneys will ensure that you are in compliance with national and European Union regulations and all of your assets are protected.

Why investment banking?

There are several things that might motivate a person to look into investment banking. One reason why investment banking is sought after is in the case of business owners who need to raise capital or undergo some sort of corporate restructuring. On the other hand, both institutional and large-scale individual investors seek out the advice and services of banks to invest in a variety of assets, such as stocks and bonds. Spanish investment banks, like their counterparts around the globe, serve as the intermediaries between companies wishing to issue shares in an initial public offering (IPO) or follow-up offering. Finally, a few ambitious individuals are interested in investment banking as a career.

Services of Spanish investment banks

For foreign investors, Spanish investment banks may offer financial advising services to help clients maximize the performance of their investment portfolios. Most of the top banks in Spain work with large institutional investors, including corporations, pension funds, hedge funds, other banks and even government bodies. In this role, it is important for the banker to understand their clients’ objectives and have a thorough working knowledge of current and long-term trends in the applicable markets.

If you are the owner of a company, you may wish to raise capital by selling shares of your company’s stock. Another vital service provided by investment banks in Spain is facilitation of corporate mergers and acquisitions. This process involves determining the valuation of a potential acquisition and mediating between the parties involved to help them agree on a fair price.

Top banks in Spain

Below is a list of the top investment banks in Spain by total assets in 2017, from largest to smallest. Remember that size is an important asset for investment banks as it improves the chances of matching buyers and sellers, thereby increasing liquidity.

  1. Banco Santander, Spain’s largest bank with presence in Europe, North America, South America, and Asia. Total assets: €4 trillion.
  2. BBVA (Banco Bilbao Vizcaya Argentaria), the second largest bank in Spain by total assets and the largest financial institution in Mexico. Total assets: €400 billion.
  3. CaixaBank, Spain’s third largest financial institution with the country’s most extensive bank branch network. Also owns shares in the companies Repsol and Telefónica. Total assets: €383 billion.
  4. Banco de Sabadell, a preferred option among SMEs and large-capital individual investors. Total assets: €212 billion.
  5. Bankia, the result of the consolidation of seven different savings banks which took place in 2010 during the global financial crisis. Total assets: €179 billion.

Every Spanish investment bank has its advantages and its drawbacks depending on your unique situation. You may want to consult with your attorneys before making a firm decision.