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The Mps securitisation has started. Quaestio investing 805 million
11 January, Il Sole 24 Ore
The securitisation of the Mps bad loans has started, one of the biggest ever done in Europe. This is the first step for the reorganisation process of the bank coordinated by the European authorities and with the participation of elements of the Italian Government in the management of the bank.
Quaestio Capital sgr, on behalf of Italian Recovery Fund, has just closed the investment for the mezzanine tranche for about 25 billion euro. Yesterday the stocks of Monte dei Paschi di Siena, which was also suspended, registered an excellent performance with an increase of 3.33% and reaching 4 euro.
The operation was carried out through the Italian Recovery Fund that will acquire, for a value of 805 million euro, 95% of the mezzanine tranche issued by a special purpose vehicle that received the bad loans portfolios from the bank. The investment for 95% of the junior tranche by Italian Recovery Fund, along with the rating and the Gcas on the senior tranche (to be sold on the market to institutional investors) will probably happen around June.
Regarding the transactions planned for the second part of the year, the asset management company led by Paolo Petrignani will avail itself of a team of arrangers (Mediobanca, Deutsche Bank and Jp Morgan) and of selected servicers: Cerved, which used the Mps platform in the past, the group Dobank-Italfondiario, Credito Fondiario and Prelios.
The total investment by the fund managed by Quaestio will be comprised between 1.4 billion and 1.5 billion. Therefore, it’s likely that the investments on the junior tranche, excluded the 805 million for the mezzanine tranche, will be around 600 million. It’s still not certain whether the securitisation will include or not about credits for one billion. Finally, a small senior tranche, not rated, might be separately transferred by Mps itself.
With the Mps operation, all the available assets of Italian Recovery Fund are fully invested. The fund was created by several Italian and international financial institutions. Depending on the remaining investments, there might be a remainder of 100 million. Italian Recovery Fund is currently involved in four securitisation operations on bad loans for about 31 billion gross and a total investment of approximately 2.5 billion. About 600 million are allocated to the Berenice operation related to the bailout of Cassa di Risparmio di Cesana and Cassa di Risparmio di San Miniato, while nearly 400 million are allocated to the NPL operation for Marche, Chieti, Etruria and Ferrara.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi