Lombard loans on the BME.
Private credit against Bolsas y Mercados Españoles (Madrid)-listed shares — pledged, not sold.
A Lombard loan against BME-listed shares is credit secured by a pledge of equity listed on the Bolsas y Mercados Españoles (Madrid). The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment.
- Facilities are arranged against equity listed on the Bolsas y Mercados Españoles (Madrid) (BME), Madrid.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in EUR or cross-currency.
- Structured under CNMV, with disclosure from 3%.
The venue
The principal Spanish equities venue. Acquired by SIX Group in 2020, retaining its local regulatory profile while gaining cross-listing access to the Swiss market. Banking-sector concentration is a defining feature of the IBEX 35.
Regulator and disclosure
The Bolsas y Mercados Españoles (Madrid) operates under Comisión Nacional del Mercado de Valores (CNMV). Royal Decree 1362/2007 transposing the EU Transparency Directive: notifications required at 3%, 5%, 10%, 15%, 20%, 25%, 30%, 50%, 60%, 70%, 75%, 80%, 90%. A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
Structuring a facility here
Lombard facilities against BME-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in EUR or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread.
| Exchange | Bolsas y Mercados Españoles (Madrid) (BME) |
|---|---|
| City · Country | Madrid · Spain |
| Regulator | Comisión Nacional del Mercado de Valores (CNMV) |
| Disclosure | From 3% |
| Principal indices | IBEX 35, IBEX Medium Cap, IBEX Small Cap |
| Segments | Continuous Market (Mercado Continuo); BME Growth (SME); BME MTF |
| Currency · Tenor | EUR · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Financing a position listed on the BME?
Request terms →See also the country overview: Lombard loans in Spain.
Other exchanges in the region.
On this market, specifically.
Liquidity and the index
The IBEX 35 sets the tone on BME, and it is defined by heavy weighting to the large banks alongside utilities and international infrastructure names. Those leaders carry the free float and turnover a sizeable Lombard loan requires, so we can advance against a substantial holding while our hedge or eventual unwind stays within normal volume. Beyond the index, on BME Growth and the smaller lines, liquidity thins markedly, and there we apply a more conservative advance rate and size the facility to what could be sold in an orderly way across several sessions rather than at once.
Structuring notes
Settlement runs through Iberclear, and there is a natural link to our home market: BME belongs to SIX Group, the operator of the Swiss exchange, so Spanish and Swiss custody share a corporate roof. A Lombard credit is documented against the Madrid listing while the shares stay in the client's ownership, dividends and votes intact. With the IBEX so concentrated in banking, a large holding can sit near the low Spanish disclosure thresholds, so we structure the facility and any collateral calls to keep the client clear of an unintended notification and to preserve continuity of the position.