The package is constituted by bad loans secured by real estate. Sale around 40% of the nominal value. Since 2016 the bank has been transferring 2.5 billion bad loans.
Banco Bpm’s board of directors has approved on 31st March 2017 the sale without recourse of a secured bad loans portfolio (the Rainbow Project portfolio) for a total nominal value equal to 693 million euro gross. The transfer will be finalized by the 30th June 2017, upon the subscription of a contract with Algebris as a vehicle. The operation will bring to around 2.5 billion (2.7 billion considering the pipeline of single name transfers about to end) the total of transfers of bad loans made since 2016, in accordance with the de-risking program included in the 2016-19 strategic plan which envisages the transfer of 8 billion npls by 2019. The operation is rather unusual for the Italian npls panorama due to the composition of the portfolio (entirely secured) and to its dimensions. Besides, the estimate around 40% associated with the credit transferred is much higher than what was expected in the strategic plan. The portfolio, composed of credits secured by commercial, touristic and residential real estate properties, features a balanced distribution in terms of evaluation of the single assets. Banco Bpm was assisted by Banca Akros and Kpmg Corporate Finance as financial advisors and by the firm Studio Chiomenti as legal advisor.
“We are proud for the successful conclusion of this competitive process, rigorously and professionally managed by Banco Bpm. Investing in npls in Italy allows the banks to clear their financial statements, an essential condition in order to resume their activities, such as granting loans to real economy”, declared Davide Serra, head of Algebris.
The Algebris Npl Fund, launched by the Algebris group last December, is focused on investing on npls in Italy. The vehicle aims at gathering 1.25 billion by the end of the year and is assisted in this by Serra’ expertise, together with the npl team coordinated by Massimo Massimilla. The team avails itself of qualified professionals with a solid background in the financial and real estate sectors supporting Algebris in the analysis, acquisition and appreciation of the bad loans portfolios.