Italian Banks Update 2017-05

MPS is trying to accelerate the securitization of its 27.7Bn NPL portfolio in order to finally allow Italian Government to step in and take a majoity stake in its capital

  • According to this press release e MPS Board of Directors resolved to grant a period of exclusivity, until 28 June 2017, to Quaestio Capital Management SGR S.p.A. (on behalf of Atlante II and of a group of investors) to enable the negotiation of the terms and conditions of the securitisation of the bad loan portfolio subject to disposal
  • According Times of MaltaFortress and Credito Fondiario were carrying out due diligence on the NPL portfolio, which was expected to close on June 9. This is aimed to to allow Atlante and the other investors to buy the junior and mezzanine tranches in a securitisation of Monte dei Paschi’s bad loan portfolio for €1.3 billion, while the senior tranche would be backed by a state guarantee and sold to institutional investors


  • As reported by FT since the start of 2017, MPS, the Italian government, the European Commission and the European Central Bank’s regulatory arm, the Single Supervisory Mechanism, have been locked in talks about the design of a rescue.If the latest rumours are right, a deal could be sealed within a month. More than €8bn of fresh capital would be injected into MPS, including more than €5bn of government money, with the rest generated through a drastic restructuring plan, involving “bail-in”: the conversion of junior bonds into equity.

Veneto Banca and Banca Popolare di Vicenza will not receive anymore money from Atlante Fund. As reported by reuters ,  Alessandro Penati, head of the Quaestio fund which manages Atlante, said in a letter to the two banks that at the moment they  do not see the conditions for any further investment in the banks by the funds managed by them.  He then added that a spin-off fund called Atlante II and set up specifically to buy up bad bank debts had already made a preliminary commitment to invest 450 million euros in the junior tranche of a planned bad loan securitisation by the two banks.

The lenders have requested state aid to fill a capital gap of 6.4 billion euros (£5.5 billion) but the European Commission has requested them to find an additional 1 billion euros in private capital before taxpayer money can be used to save them.

Banco BPM has received bids ranging from 250 million and 300 million euros  for a 720 million euro ($809 million) bad loan portfolio that Italian bank Banco BPM has put up for sale,  according Reuters. Binding offers for the portfolio, dubbed ‘Project Rainbow’, are due on June 5 at the latest and advisers KPMG and Banca Akros will take about a week to assess them, the sources said.Banco BPM has pledged to cut its problem loans to win European Central Bank’s approval of last year’s merger between Banco Popolare and Banca Popolare di Milano, which gave birth to Italy’s third-largest bank.

Banca Ifis successfully launched on May 18th its first senior bond issue, for €300 million, reserved to qualified investors, excluding those in the United States or in any other country, or to persons there resident, where the offer or the sale of bonds is restricted in accordance with applicable laws. Few days later the bank has finalized an agreement for the purchase of a loan portfolio having a nominal value of about 190 million euro from Barclays. The portfolio consists of about 75.500 positions made up of mostly non-performing consumer loans (personal loans, credit cards) and for the remaining part of performing loan agreements regularly repaid by customers.

Stay tuned on Italian Banks and NPL on #Liberi Di Scegliere via @blastingnews



GLG – Gerson Lehrman Group – Council Member

Join the Linkedin Group – Entering Italian NPL Market

About Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,
This entry was posted in Entering Italian NPL Market, Italian Banks and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s