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NPLs and aggregation: Carige opened two data rooms

06 February, The Medi Telegraph

Carige started the process for the sale of the impaired loans still within the bank and for the aggregation with another company. According to Secolo XIX, “Two data rooms have been opened. One is dedicated to NPE the bank wants to sell, for NPLs and UTPs amounting to 1.5 billion. The other data room more generally concerns the aggregation”. Hence, the work on the business plan, to be disclosed by the end of February, is going live.

Sga, the company controlled by the Treasury, has already accessed the data room for the impaired credits. According to the rumours that have been circulating in the last two weeks, among the players interested in the dossier there are Credito Fondiario, which had acquired in the past NPLs for 1.2 billion from the bank, and Illimity Bank, whose Ceo Corrado Passera has recently stated that “Illimity is open to evaluate the UTPs and NPLs that Carige will possibly put on the market”.

The aggregation process is dealt through a separate process. The dedicated data room allows whoever is interested “to have an insight into the numbers of Carige and to make precise requests”, as explained by a financial source. The advisor Ubs has worked on a vast audience, as it often happens in these cases: “those who want to have a deeper look into the figures can do that by signing a confidentiality agreement”.

Selling impaired loans for 1.5 billion of the outstanding 2.8 billion would allow the bank to reach a physiological ratio between impaired credits and total credits (5-10%), making Carige more attractive to the eyes of possible candidates. These candidates might be interested in a good bank, namely only the best assets since the bank currently needs a 400 million capital increase in order to repay the 320-million bond of the Voluntary Scheme. In this regard, Intesa Sanpaolo has carried out a “total devaluation of the subordinate bond by 54 million”, as stated by Ceo Carlo Messina, meaning that Intesa considers the credit gone.

The capital increase is a sensitive point, as it’s pending the Assembly’s approval. It had been stopped once by the abstention of Malacalza Investimenti. The aggregation also requires the approval of the Assembly. According to the rumours, “several banks are interested in Carige, but the issues are two: the cost of the operation and the possibility to negotiate with the majority shareholder Malacalza”. Unicredit, Ubi, Banco Bpm, Crédit Agricole, Bnp Paribas, and Bper are among the possible candidates. Apollo, which had already acquired Carige insurance division, is the only name concerning funds.

While discussing the Carige decree, yesterday the finance committee of the Chamber of Deputies voted the amendments, rejecting them all except one. The amendment requires the Ministry of Economy to present every four months to the Chamber of Deputies a report stating the details regarding the big debtors of the group, namely those holding bad loans for amounts over 1% of the bank’s equity. The decree has been supported by all the main political parties.

Source: The Medi Telegraph

Translator: Cristina Ambrosi

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