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Bain most likely to purchase NBG’s Icon portfolio

The evaluation of the binding offers shows that Bain is more likely to win the tender for the purchase of NBG’s Icon portfolio, which consists of denounced loans or in late arrears SME loans.

On February 4th, NBG received two binding offers for project Icon from Bain and Fortress. The offers are reportedly lower as a percentage of equity compared to previous NPL deals such as Amoeba and Symbol but they are considered satisfactory as they allow the bank to sell without recording losses.

The evaluation outlined Bain’s offer which is expected to start exclusive negotiations with NBG for the signing of a binding agreement (SPA).

The fact that so far no improvements have been requested from both investors shows, according to the market, that Bain’s bid is significantly better than Fortress’s.

The portfolio for sale includes 7,300 denounced loans or loans in late arrears of 1,500 small to medium-sized enterprises. The debt is €1.52 bn and the bank’s total claim is €2.5 bn.

The loans have mortgages on some 6,000 properties worth €1.1 bn. Commercial and industrial real estate properties (offices, shops, hotels, warehouses, industrial sites) are valued by the bank at €800 m. 27% of the mortgaged properties are located in Athens and another 23% in Macedonia, North Greece.

About 55% of businesses whose loans are for sale have stopped operating. The portfolio is divided in two sections. The first relates to loans of 137 small and medium-sized enterprises with a debt of €959 m and the other to loans of small and very small enterprises with a debt of €564 m. With the successful completion of the Icon Project, NBG will significantly consolidate its portfolio of denounced SME loans.

Original Source: Euro2day

Adaptation/Translation: Kiki Athanasiadis