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


About Massimo Famularo

Investment Manager and Blogger Focus on Distressed Assets and Non Performing Loans Interested in Politics, Economics,
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