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Banco Bpm: two candidates for the maxi NPL operation

03 December, Il Sole 24 Ore

Banco Bpm reveals its reorganisation plan, although there is no winner for the NPLs yet. The Bank’s Board of Directors headed by Giuseppe Castagna decided to delegate to the Ceo the officialisation of the agreement. There are still two offers on the table: the one from the team of Dobank-Fortress-Illimity and the one from Fonspa-Elliott. The counteroffers are expected by mid-, and it may be possible to tell the winner only then.

The team composed by Christofferson Robb & Company, Davidson Kempner and Prelios (supported by Rothschild and Mediobanca) is allegedly out of the competition. The bank aims at disposing of as many bad loans as possible through Gacs, the state guarantee.

Banco Bpm, with the assistance of Deutsche Bank and Deloitte, might be close to the completion of the operation valued 8.6 billion, including the servicing platform. One of the issues to solve though concerns the selling price for the portfolio in order to avoid losses in the accounts. The price might probably be comprised between 22% and 25%. At these conditions, according to the analysts, Banco Bpm might be able to keep an 11%fully loaded Cet1.

While the operation seems to be close to an end, after having started last summer with seven teams competing for the portfolio, another operation concerning consumer credit is also proceeding. Last month, the Agos Ducato partners Banco Bpm and Credit Agricole, appointed their advisors, respectively Nomura and Morgan Stanley, for the evaluation of the various viable options.

Banco Bpm assigned its financial consultants for the optimisation of the bank’s consumer credit division to avoid overlaps after the merger between Popolare di Milano and Banco Popolare. The plan is to transfer to Agos-Ducato (39% Banco Bpm, 61% Credit Agricole) the entire capital of Profamily along with a 10-year distribution agreement. In this way, the bank will get the funds necessary to compensate the losses on the NPL portfolio.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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