Banco Bpm is to securitise NPL for 5 billion

31 May, La Repubblica

Banco Bpm started the securitisation of an NPL portfolio worth 5.1 billion on which it intends to use the state guarantee (Gacs).

More in detail, the bank launched the so-called “Exodus” project to transfer the portfolio (whose value dropped to 4.9 billion on 31st March) to the special purpose vehicle Red Sea spv, which will issue senior, mezzanine and junior notes. At first, the notes will be underwritten by Banco Bpm itself.

Later, the mezzanine and junior tranches will be sold to third-party investors, while the senior tranche will be kept by the bank using Gacs. The operation is included in the group’s transfer plan and is valued at 13 billion (4.5 of which have already been transferred), its accounting impact will be registered in the first semester figures. Banco Bpm expects that the selling price will “substantially aligned to the current credits’ book values” of the transferring banks’ accounts.

Despite the financial crisis the country is going through at the moment, the moment chosen for the operation is a signal of the solidity of the bank, which expressed a long time ago its intention to accelerate on the NPL disposal. On this regard, the bank committed with the ECB at the time of the merger, but the Ceo Giuseppe Castagna has stated many times his will to be ahead of schedule.

Source: La Repubblica

Translator: Cristina Ambrosi

Email

Linkedin

Twitter

Google