06 December, Milano Finanza
Today Carige has subscribed a binding agreement with Credito Fondiario for the transfer with no recourse of a bad loans portfolio secured and unsecured for a nominal value of 1.2 billion as per 30th March. Today the details of the operations were defined, regarding the price of 265.7 million, corresponding to 22.1% of the gross book value, “better than that estimated in the 2017-2020 strategic plan approved on 13th September”, writes the bank in an official memo.
The bank reminds that the transaction will bring to 2.2 billion the total transfers of bad loans done during the second semester that are included in the de-risking program of the strategic plan. The plan, in fact, sees the reduction of the stock of bad loans to 3.1 billion by 2020. The finalisation of the transaction is scheduled for the end of 2017.
Banca Carige announces, moreover, to have also signed with Credito Fondiario a binding agreement for the transfer of the platform for the management of bad loans as well as the subscription of a long-term servicing contract. The price is 31 million euro (“also in this case, better than the price estimated in the strategic plan”). The closing of the operation is scheduled for the first semester of 2018 upon the approval of the regulatory authorities.
Both the operations, as Carige reminds, are included in a competitive process that saw the participation of over 30 national and international investors. The bank was assisted in the transaction by Bain & Co as industrial advisor and by Orrick as legal advisor. Credito Fondiario was assisted by the legal firm Chiomenti. The operation was coordinated and supervised by Partner Gregorio Consoli.
Yesterday Carige recognised to one of its first appointment sub guarantors the right of first offer on an NPL portfolio potentially to be transferred for a gross value of 200 million.
Finally, Carige reminds the commitment taken with Malacalza Investimenti Srl, stressing that the pact for the capital increase for 500 million euro is still valid. Moreover, a supplementary dossier is coming soon pending Consob approval. “The publication of the dossier implies the right of withdrawal pursuant to the Article 95 bis of the Legislative Decree dated 24th February 1998 n.58”.
Source: Milano Finanza
Translator: Cristina Ambrosi