Bailed out bank said loaned $835m by Goldman Sachs

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Goldman Sachs loaned Portugal’s Banco Espirito Santo SA $835 million in July, just weeks before the group’s units sought creditor protection in a cascade of insolvencies that resulted in the lender’s bailout.

Bloomberg News reports that Goldman Sachs made the loan through Oak Finance Luxembourg SA, an investment company that raised funds destined for a Venezuelan oil refinery project, according to the unit’s offer document.

Banco Espirito Santo, once Portugal’s biggest publicly traded lender by market value, was bailed out Aug. 3 after it disclosed potential losses on loans to other Grupo Espirito Santo companies and regulators ordered the lender to raise more capital. The bank was split in two with deposits and healthy assets becoming Novo Banco in a bailout by the central bank’s Resolution Fund.

The Wall Street Journal reported earlier on Monday that Goldman Sachs sold some of Oak Finance’s securities at a loss to hedge funds and the New York-based firm is still holding some of the debt, citing a person it didn’t identify.

Hit the link below to access the complete Bloomberg News article:

Goldman Sachs Loaned Banco Espirito Santo Funds in July

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