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Sabadell Moves to Sell €500 Mn Project Triton Loan Portfolio

4/11/2014 – Expansion

Banco Sabadell also wants to make profit on the funds’ appetite for acquiring loans and collateral real estate assets. The entity sells a NPL portfolio worth between €450 and 500 million.

Of the amount, 80% corresponds to non-performing loans to developers and 20% are REO assets. Ernst & Young advises on the operation named Project Triton. More than 20 international bidders attended the first (non-binding) phase of the tender.

The Second Phase

Started last week, this stage sifted out two final candidates. They will conduct the portfolio’s due dilligence and submit their binding offers at the end of November.

As a plot of circumstances, another Catalonian entity, CaixaBank, has also announced a sale of €400 million Project Tower loan pool . Bankia does not fall behind with its portfolio sold for nearly €80 million.

This sort of sales attracts attention of such funds as Cerberus, Apollo, Blackstone, KKR, Soros or Chenavari. They buy discounted product and grab collateral properties.

Inside its non-core asset divestment plan, Sabadell sold its debt management and collection branch to Lindorff for €162 million earlier this year.

Moreover, last Friday Sabadell placed an issue of 7-year covered bonds which turned out to enjoy great popularity on the part of more than 100 investors, with demand exceeding €3 billion.

 

Original article: Expansión (by S. Saborit & J. Zuloaga)

Translation: AURA REE