16 April, Money
The operation might conclude by the end of June and it will require the public guarantee (Gacs) on the senior tranche, namely the least risky NPLs.
The listing of its NPLs by Mps will be a bold move with the aim of attracting new investors, considering the bad performance of the shares on the Stock Exchange.
For instance, since the beginning of the year, the Mps stocks have lost over 31% and have gone from 3.89 euro in January to 2.67 yesterday, 11th April.
Listing non-performing loans would be something never seen in the Italian stock market and it would concern a 24.6-billion-euro portfolio.
The listing of the securitised NPLs would allow Mps to attract new investors and at the same time to increase the liquidity of the secured senior notes.
However, the operation might present issues of various nature. There are problems concerning timing, along with the possible informative discrepancies between the various securitisation levels.
Cdp will not acquire Mps
The rumours about the listing have arrived along with the declaration of the Ministry of Economy and Finance regarding the assumption of Casa Depositi e Prestiti buying Mps. The assumption has been defined just merely a fantasy, as it would imply a very complex transfer of Cdp to the banking authority.
Once again, the investors were watching how the Mps stock are performing on the Stock Exchange (1.54%) after the statement from the Ministry.
Translator: Cristina Ambrosi