Creval: securitisation of NPL for 1.6 billion

13 June, Milano Finanza

Credito Valtellinese completed the transfer of an NPL portfolio for a gross value of 1.6 billion euro through securitisation with Gacs at a price equal to 32% of the gross book value. The shares increased by 4.64% at 0.101. The special purpose vehicle Aragorn will issue three types of Abs notes: a senior tranche for 509.5 million (the bank will keep in full this tranche, for which it will officially request the Gacs to the Ministry of Treasury in the next days), a mezzanine tranche and a junior tranche valued respectively 66.8 million and 10 million.

The mezzanine and the junior will be allocated for 95% to international investors. “Thanks to this operation, the NPL disposal plan for 2018 is almost completed, having achieved successfully the objectives set in the 2018-2020 industrial plan”, reads the memo from the bank guided by Miro Fiordi. With the transfer of the Aragorn portfolio, which will be effective on 30th June, the gross NPL ratio will fall from 19.3% to 11.5 %, also considering the other transfers referred to the project Gimli.

The goal for the end of 2018 is to reach 10.5% with a further 9.6% reduction by the end of 2020, thanks also to the internal NPL management activity, as Creval reminded. Since 2015, the transfers have amounted to 4 billion in total, with the reduction of the gross Npe stock by approximately 67%, if we include the Aragorn operation.

As of 1st July, Mauro Selvetti will be the new Ceo, maintaining also the role of general director. The first quarter of 2018 closed with a loss equal to 30 million euro against profits of 2.35 million registered in the first quarter of 2017. Creval has carried out in the past few months a capital increase of 700 million.

Source: Milano Finanza

Translator: Cristina Ambrosi

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