12 October, Il Sole 24 Ore
The agreement with Bain Capital Credit concerning the transfer of UTPs for 400 million has been formalised. Meanwhile, the procedures for the securitisation with Gacs (the state guarantee) concerning NPL for approximately 900 million have started. This operation too is scheduled for the end of the year. That’s what the Carige members meeting decided, the first after the nomination of Fabio Innocenzi as Ceo and Pietro Modiano as president. The Board gathered yesterday just after the downgrade of the bank by Fitch from B- to CCC+, based on the “real possibility” of a default of the bank from Genoa. As a result, the shares lost up to 10% on the Stock Exchange and closed with -6.12%, setting at 0.0046 euro.
Concerning Fitch, the Board stressed how the rating is based on the figures dated before the commitment taken by the majority shareholder Malacalza to support the bank after the last meeting. Moreover, the Board explains that the resolutions risk can be determined only in the case the capital strength requirements are not accomplished. The indicator of such requirements is the phased-in Cet1 ratio, which was 11.9% on 30th June: above the level required by the ECB (9.625%) and the threshold recommended by the Surveillance Authority to Carige (11.175%).
Concerning the Npe strategy, the Board gave the green light to the Ceo to proceed with the formalisation of the agreement with Bain to sell the UTP for a gross book value of 400 million. The operation will bring the Npe stock below the target of 4.6 billion agreed with the ECB. As already mentioned, the preliminary activities for the securitisation with Gacs will start by the end of the year.
Moreover, the bank might evaluate the various modalities of operational turnaround, and it will assess and identify a potential investment bank for possible mergers in the next meeting.
Concerning obligations, the deadline for the Capital conservation plan has been confirmed for 30th November 2018, as no postponement was requested to the ECB. The Board of Directors assigned the Ceo for the development of an operational plan by the end of the year to grant compliance with the Overall capita requirements, regardless of the current market conditions. For this purpose, the ideal conditions to fill the gap detected by the ECB are currently under study, along with the guarantees needed for the execution of the plan. The Board will decide in this regard by the end of the month.
The transfer of 80.1% of Creditis to Chenavari has also been discussed, and the negotiations are going on.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi