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Monte Paschi is to securitise NPL for 24 billion
11 June, Blasting News
The MPS group has finally completed the securitisation of NPL for a total gross value of 24.1 billion euro. The “investment grade” rating on the senior tranche is particularly interesting.
The operation is a crucial step in the reorganisation process announced last July to dispose of the bad loans within the scheduled times with the deconsolidation of the accounts expected by 30th June. This operation is included in the broader reorganisation process of the Italian banking sector with a focus on NPL reduction, according to the recommendations of the ECB.
The details of the operation
The securitisation has been organised by MPS Capital Service which will act as the lead arranger together with Deutsche Bank, JP Morgan, Mediobanca and Banca di Credito Finanziario, whereas Crédit Suisse and HSBC will be the placement agents.
The special purpose vehicle constituted according to the regulation of the law n. 130/1999, is called Siena NPL 2018 S.r.l. It will receive bad loans from Monte Paschi for 24.1 billion euro, and it will issue three tranches of obligations of the ABS type (Asset-Backed Securities).
The senior tranche has a value of about 2.9 billion and will provide returns equal to the 3-month Euribor, plus a 1.5% spread including the premium for the Ministry of the Economy that granted the Gacs.
These securities have got the rating of “Investment Grade” by three agencies: DBRS, Moody’s Investors Service and Scope Ratings GmbH.
There is also the mezzanine tranche for 847.6 million, subscribed the former Atlante fund, now called Italian Recovery Fund, managed by Quaestio Capital SGR. Besides, there are also other junior notes for 565 million which will be underwritten by the fund once the senior segment will have obtained the Gacs which is supposed to be officially issued on the upcoming weeks.
The master servicer of the operation will be Credito Fondiario Fonspa which will act as special servicer together with Italfondiario, Prelios and the new platform Cerved/Juliet.
The placement in the Italian banking industry
A few weeks from the completion of the Intrum-Intesa operation, the current scenario is characterised by the intense activity of the special servicers, with about 180 billion managed by the three main platforms DoBank-Italfondiario, Cerved and the new Light of JV and Intrum. In addition, we’re witnessing at a progressive deconsolidation of the NPL acquired by independent investors (Italian as well as international) or transferred to securitisation vehicle such as in the case of MPS.
Source: Blasting News
Translator: Cristina Ambrosi