Banco Bpm launched the securitisation of bad loans for 5.1 billion euro

01 June, Bebeez

Yesterday Banco Bpm started the securitisation of bad loans for a value of 5.1 billion euro on which it will request the Gacs, namely the state guarantee.

The portfolio, named Exodus project, implies the issuance by the special purpose vehicle Red Sea SPV srl of three types of securities: the mezzanine and junior tranches will be sold to third-party investors, while the bank will keep the senior one.

The planned amount of the operation was initially 3 billion. Banco Bpm was assisted by Mediobanca, Banca Akros and Deutsche Bank in the role of financial advisors, while Prelios acted as servicer.

The securitisation is the last of a series of transfers that have been carried out in the last months under the guidance of Edoardo Lombella (head of the portfolio disposal division). For instance, in June 2017 the group led by Giuseppe Castagna sold the Rainbow portfolio to Algebris for 693 million, composed of loans backed by commercial real estate assets, hotels and residential properties.

In the second part of the year, the bank sold the Sun portfolio for 1.8 billion, which was acquired by J Invest and Hoist Finance in December.

Banco Bpm is now studying how to get rid of the last 3.5 billion included in the business plan, the so-called Ace project. The portfolio might be sold together with the whole or just a part of the management platform.

Source: Bebeez

Translator: Cristina Ambrosi

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