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CaixaBank Chooses Six Funds For “Flanders Project” Final Bidding

28/04/2014 – Expansion

CaixaBank speeds up the largest loan sale found presently in Spain. The financial entity chaired by Isidro Fainé has selected finalists that will take part in the bidding for €1.1 billion worth of unpaid loans to SMEs, embraced by the “Flanders Project“.

According to financial sources with knowledge of the operation, there are between 4 and 6 funds, supposedly Cerberus, Oaktree, D. E. Shaw, Perry Capital, Castlelake and a Deutsche Bank fund.

The sale evoked huge interest of funds, as so did the credit portfolio transactions concluded earlier this year by Catalunya Banc (€1.35 billion worth) and by Bankia (€713 million).

The staggering interest also pushes the price up. In case of the Catalunya Banc´s sale, Aiqon Capital paid 5% of the total portfolio value, while usually it is 4% for this sort of asset.

The “Flanders Project” consists of 33.000 defaulting credits of SMEs and big companies declared as insolvent (55%), a part with properties as a collateral. Most of them are scattered around Madrid, Catalonia and Andalusia. The operation involves four sub-portfolios named Brujas, Amberes, Gante and Lovaina. Around 67% of all loans are in trial process to recover due amounts.

When it comes to alleged purchasers, Oaktree is said to vie for only one sub-portfolio. Cerberus acquired Bankia Habitat last year, while Perry Capital bought two portolios of Liberbank and Popular. D. E. Shaw has not purchased any property in Spain so far. Deutsche Bank is not a very habitual buyer of non-performing loans and Castlelake has recently hired Sareb´s director, Francisco Jonet.

 

Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE