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.


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.

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GLG – Gerson Lehrman Group – Council Member

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. Bookmark the permalink.

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