Italian NPL Update 2018-08

Italian Banks facing troubles due falling prices of Italian bonds may found some relief from the prolongation of the Italian guarantee scheme to facilitate the securitisation of non-performing loans (GACS).

MPS is about to launch project Merlino a sale of 2.5Bn of unsecured loans. PWC is said to be advisor of a competitive process that could involve as bidders Banca IFIS, Hoist, Cerberus, Mb Credit Solutions e Kruk among others.

The Business Combination between SPAXS (the initiative promoted by Corrado Passera and Andrea Clamer) and Banca Interprovinciale will give birth to Illimity Bank, a new bank specialized in the Italian SME market, featuring a highly innovative and fully-digital business model. The new bank will employ professionals with long-standing experience in both banking and specific industries who will work on the creation of a specialized bank with a clear focus on large, dynamic and underserved segments of the Italian market.

ItaCapital, a subsidiary of WSE-listed debt collector Kruk, won a tender for the purchase of a portfolio of unsecured retail receivables with a nominal value of approx. €302 million on the Italian market.

Dobank reports that it has signed an agreement with the four Greek systemic banks, Alpha Bank, National Bank of Greece, Eurobank and Piraeus Bank (“the Banks”) based
on which doBank will be assigned the exclusive management of a portfolio of non-performing exposures (“NPEs”) of approximately Euro 1.8 billion (Gross Book Value). he NPEs portfolio is composed by loans pertaining to more than 300 corporate debtors, small and medium Greek enterprises (“SMEs”) which belong to groups of companies with exposure to at least two of the Banks (“common exposures”).

Ubi Banca announced the securitisation of a portfolio of bad loans with a gross book value (gross nominal value) of €2.75 billion. The bank added that application will be made shortly for GACS on the relative senior tranche. A second portfolio of bad loans is being prepared for disposal, without recourse to securitisation.

Bain Capital Credit, LP, (“Bain Capital Credit”), announced the acquisition of a portfolio of Unlikely-to-Pay (“UTP”) corporate loans, known as UTP part of Project Valery, from the 3 Italian banks controlled by Crédit Agricole (Cariparma, Friuladria  and Carispezia).  The total book value was approximately €450 million.

Phoenix Asset Managment will mange a 700m NPL portfolio formerly originated by 3 Italian banks controlled by Crédit Agricole (Cariparma, Friuladria  and Carispezia) and now acquired by a private investor (the NPL portion of project Valery).

Banco BPM is still working at the sale of NPL portfolio that may range from 3 to 9 Bn together with the credit management platform (project ACE). Three bidders are said to have been shortlisted: DoBank running for Fortress and Illimity, , Credito Fondiario runnning for Elliott Capital Management and Prelios running for Christofferson Robb & Company  and Davidson Kempner.

Varde Partners, Barclays investment bank and Guber Banca announced the joint acquisition of a portfolio of non-performing loans originated by 53 cooperative banks, rural banks and popolari banks spread throughout Italy. The gross book value (GBV) of the portfolio is €1.397 billion. Centrale Credit & Real Estate Solutions (CCRES), part of Cassa Centrale Banca Group, acted as advisor, coordinating the sale process.

Don’t miss my panel at Berlin Distressed Investments Forum (September 13th) and workshop at Banca IFIS NPL Meeting (September 27th)

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GLG – Gerson Lehrman Group – Council Member

 

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Good News for Italian Banks

Italian Banks are facing some troubles due falling prices of Italian bonds that will likely cause substantial impairments on their balance sheets. Some relief may come from the   prolongation of the Italian guarantee scheme to facilitate the securitisation of non-performing loans (GACS).

The scheme was initially approved in February 2016 and last prolonged in September 2017. Under the scheme Italian banks meeting certain conditions will continue to be able to request a State guarantee on the lower-risk senior notes issued by private securitisation vehicles that help them to finance the sale of their non-performing loan portfolios.

The more risky funding tranches of the securitisation vehicles are to be sold to private investors and will not be guaranteed by the State. By assisting banks to securitise and move non-performing loans off their balance sheet, the scheme is an important component of Italy’s strategy to tackle banks’ asset quality problems and has already made a significant contribution. Since its entry into force until June 2018, the scheme has been accessed six times by five different banks, removing €33 billion (gross book value) of non-performing loans from the Italian banking system, which corresponds to over 60% of the total reduction of non-performing loans in Italy during that period.

The Commission’s assessment showed that, under the scheme as notified by Italy, the State guarantees on the senior notes will continue to be remunerated at market terms according to the risk taken, i.e. in a manner acceptable for a private operator under market conditions. On this basis, the Commission was able to maintain its conclusion that the measure is free of State aid within the meaning of EU State aid rules. Today’s authorization is granted until 7 March 2019.

More information will be available on the Commission’s competition  website in the public case register under the case number SA.51026 once any confidentiality issues have been resolved. (For more information: Ricardo Cardoso – Tel.: +32 229 80100)

(Link to press release)

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Don’t Miss my panel at Distressed Investment Forum in Berlin and my workshop at NPL Meeting in Venice

Are you interested in Italian banks and NPL/UTP market?

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To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

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GLG – Gerson Lehrman Group – Council Member

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Distressed Investment Forum – 3rd Edition

#Savethedate – The 3rd edition of the Distressed Investment Forum will take place on September 13th in Berlin.

I am going to speak in the Italian NPL Market Panel.

The event will take place at the central Titanic Gendarmenmarkt Berlin in the Ballsaal room and foyer in front of it.

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Here the link to the Event Page

Ask the Brochure to info@wjglobalgroup.com

Do you like my updates? subscribe my newsletter 

Are you interested in Italian banks and NPL/UTP market?

Ask for a briefing  (in person or via conference call) by sending me a private message.

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

@massimofamularo

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GLG – Gerson Lehrman Group – Council Member

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IMN’s 3rd Annual Investors’ Conference on Italian & European NPLs

#SaveTheDate – IMN’s 3rd Annual Investors’ Conference on Italian & European NPLs will return to Milan, Italy,  at Hotel Principe Di Savoia, on 15 November 2018 ,to address the latest updates in the non-performing loan market.

The conference will bring together leading representatives from major banks, private funds, law firms, rating agencies, service providers and more to discuss the industry’s pressing topics, including:

  • Overview of Italy’s Banking Sector: Strengths, Weaknesses, Opportunities and Threats
  • Overview of Key Government Efforts to Stabilise the Italian Banking Sector (insolvency and debt recovery proceedings, bank consolidation efforts)
  • Investing in NPLs: Risk and Pricing Considerations for Investors
  • Funding the Program: The Role of Securitisation in Fueling NPL Purchasing Power
    NPL Sellers’ Roundtable: Assessing the Impact of the Government Led Initiatives to Date
  • Application to Other Mediterranean Economies: Implications for Spain, Portugal and Beyond

Link to Register

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GLG – Gerson Lehrman Group – Council Member

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Italian Banks Update 2018-07

Spaxs presented the strategic plan for 2018 – 2023 of the new bank that will specialise in underserved segments of the Italian SME market and offer highly digitalised services to retail and corporate customers by means of an innovative business model.

The new bank will be created from the Business Combination with Banca Interprovinciale S.p.A. – the approval process with the relevant Supervisory Authorities is underway – and will be subject to the approval of the Shareholders’ Meeting of SPAXS on 8 August on first call and on 31 August on second call.

Banca Carige received  from ECB a negative feedback on its capital-conservation proposal. The regulator asked for a new plan to boost its capital, saying it should consider a merger as an option and swiftly resolve its corporate-governance crisis.Hit by boardroom turmoil, Carige is struggling to regain investor confidence even as Italy’s banking crisis subsides. The ECB also demanded that the bank swiftly find a replacement for Chairman Giuseppe Tesauro, who resigned last month because of differences over the management of the bank.

Iccrea Banca closed a 1Bn NPL securitization (here press release). It is the first European rated multi-originator deal of this kind with 23 originators and it will a GACs on the senior tranch worth 282m rated Baa3 by Moodys  and BBB- by Scope. Other tranches are a Mezzanine worth 31,4 rated Caa2/B+ by the same rating agencies and an unrated junior worth 10,5m.

Banco BPM will evaluated at least six offers for the acquisition of its credit management platform in bundle with a NPL portfolio. Bidders for this deal include  PIMCO working with its captive servicer Phoenix Asset Management; Davidson Kempner in joint with  TPG and  CRC , with Prelios as special servicer and  Mediobanca and Roschild as advisor; Varde Partners with Guber Bank; Fortress with its listed captive servicer doBank   and City as advisor; Elliot Capital Management with Credito Fondiario Fospa as servicer, Goldman Sachs as advisor and  CBRE for real estate assessment; and finally   Cerberus advised by Lazard e Vitale (here news in Italian)

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My Workshop at NPL Meeting

Savethedate on September 27th I am going to present a workshop at Banca IFIS‘ NPL Meeting

Cattura The topic I am going to cover is

PORTFOLIO MANAGEMENT AS KEY DRIVER FOR BOTH BUYERS AND SELLERS IN NPL MARKET

The workshop will take place in 2 time slot

  • 2:30 PM – 3:00 PM – Palazzo del Cinema – Sala 7
  • 4:00 PM – 4:30 PM – Excelsior – Sala Morosini

In order to attend the workshop you need to register to the main event at this link 

Then you will be allowed to access the workshop page where you can book by clicking on the appropriate button as showed below

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GLG – Gerson Lehrman Group – Council Member

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Italian NPL Update 2018-07

Cerberus Capital Management announced an agreement to acquire a 57% share of Officine CST SpA, Headquartered in Rome, the acquired firm provides integrated credit management services to large enterprises such as banks, institutional investors, utilities, and multinational companies, as well as small and medium sized enterprises. The company manages over €16 billion in claims and employs 150 people in Italy.

Banca IFIS has finalized an agreement to acquire control over FBS S.p.A.,
a company established by Paolo Strocchi operating in the NPL segment as a servicing specialist (including both master and special services), manager of secured and unsecured NPL portfolios, due diligence advisor, and investor authorized to conduct NPL transactions.

In addition to the large NPL securitization  deal recently closed (Italian news), MPS is planning Further bad loan disposals for at least EUR 2.6bn in 2018 with Estimated impact of disposals already included in IFRS 9 FTA.

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PWC published a new update in its Italian NPL Market Report. After the peak in 2015 NPEs have been decreasing in Italy with a sharp decline of some 60Bn in 2017 wich could continue in 2018 when some 70Bn sales are expected. After Bad Loans successful reduction process that is expected to continue in 2018-19, Unlikely To Pay are the next focus of the market facing the challenges of this specific asset that often need new lending and turnaround skills to be properly managed.Special Servicing Market is the most relevant opportunity since it could involve not only exposures sold or securitized but also the outsourcing of those assets that will remain on banks’ balance sheets.

Banco BPM closed a 5.1Bn  NPL securitization deal (Italian News) named project Exodus and launched project Ace a 3.5Bn NPL portfolio sold in bundle with a stake in the credit management platform of the bank.

Intesa Sanpaolo is planning to sell a 250m Unlikely to Pay (UTP)  portfolio in a sale named Progetto Levante. This new deal comes after the closing of a relvant JV agreement signed with Intrum Lindorff aimed to create a new servicing platform with 40Bn NPL under management. Some 10.8 Bn of these assets will be disposed by the bank through a securitization scheme.

Credito Valtellinese completed the securitization of a bad loans (sofferenze) portfolio for a Gross Book Value (“GBV”) of some EUR 1.6 billion (“Project Aragorn”), through the transfer of such portfolio to a securitization vehicle  named Aragorn.  The vehicle issued three classes of ABS: a senior tranche of 509.5 million backed by Gacs; a mezzanine tranche with investment rating of 66.8 million; a junior tranche of 10 million. In a separate press release the bank announced that  sale to institutional investors of the 95 per cent of the mezzanine and junior notes has been completed.

Credito Fondiario acquired a portfolio consisting of secured non-performing loans of the Creval Group for a gross book value (“GBV”) of EUR 222 million – which includes real estate financial leases for a GBV of over EUR 56 million – at a price close to 41% of GBV.
The portfolio consists of credit exposures mainly to real estate companies, classified as unlike to pay and bad loans.

Bain Capital Credit acquired a portfolio of NPLs with a gross value of 100 million from Alba Leasing .

Axactor has entered 3 new forward flow agreements including a significant forward flow with a financial institution in Italy. The portfolios contain unsecured consumer claims with an outstanding debt value of 140 mEUR per annum across approximately 28.000 claims, with the contracts covering a 12month period.

Do you like my updates? subscribe my newsletter 

Are you interested in Italian banks and NPL/UTP market?

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GLG – Gerson Lehrman Group – Council Member

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