Tag: unlikely to pay

Kryalos and EY launched a new €130 mln fund for UTP investments

10 February, Il Sole 24 Ore

Kryalos launched in partnership with EY a new investment fund dedicated to unlikely-to-pay credits with a transfer of credits for a GBV of €130 million from Banco Desio, BPER Banca, Banca del Fucino and Cassa di Risparmio di Volterra. The credits are 56% real estate assets, while the remainder is backed by assets. One-third is related to residential properties, 20% to industrial assets, followed by offices and shops.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

illimity to form a joint venture with Apollo to invest up to 500 mln € in NPLs

17 June, La Stampa

illimity Bank entered a binding agreement with Apollo Global Management to form a joint venture to invest up to 500 million € in distressed credits. The investments will concern Italian bad loans and unlikely-to-pay backed by assets. illimity will also allocate 231 million € to the JV, which will have an initial investment horizon of 2 years. Neprix (illimity Group) has been appointed to manage the credits.

Source: La Stampa

Translator: Cristina Ambrosi

 

Intrum and Deva Capital acquired UTP portfolio from BPER for 248 mln €

19 April, Intrum

Intrum and Deva Capital acquired from BPER Unlikely to Pay credits for a gross value of 248 million €. Intrum will operate as servicer for the portfolio through its subsidiary ReValue. The portfolio mainly consists of loans backed by various assets, including hotels, located throughout Italy.

Source: Intrum

Translator: Cristina Ambrosi

PwC: new NPEs for 60-100 bln € coming on the Italian market

08 January, Monitor Immobiliare

Although the NPE stock went from 314 billion € in 2015 to 130 billion € in 2020, the pandemic might impact this trend. PwC estimates new non-performing exposures between 60 and 100 billion € in the next 24 months. UTPs, which amounted to 59 billion in 2020, will be one of the most impacted asset classes, as SMEs and family-run businesses struggle due to the ongoing crisis.

Meanwhile, banks are continuing their deleveraging activities, with transactions completed amounting to 30 billion € in 2020. Between 2021 and 2023, new NPLs transactions for 30-40 billion € are expected to compensate for the new inflow.

Source: Monitor Immobiliare

Translator: Cristina Ambrosi

PwC: how Covid will impact the Npe market

19 December, Milano Finanza

According to PwC, 2021 is likely to register the real impact of the pandemic on the financial market. Moratoria, guaranteed loans and redundancy funds have supported the economy so far, avoiding banks’ NPL stocks to grow in excess. That’s why 2020 is expected to close with non-performing exposures totalling 115-120 billion € compared to 135 billion € as reported in December 2019.

In 2021 banks will seek to keep their current Npe ratio. The focus will shift towards UTPs, which require a more systematic management approach in order to support companies struggling both from a financial and industrial point of view. For this reason, the possibility of new players such as retirement funds, family offices and private investors entering the market is not to be excluded.

Source: Milano Finanza

Translator: Cristina Ambrosi

P&G sgr launched P&G UTP Management Fund to manage UTPs

27 November, Bebeez

P&G sgr has recently announced its new fund P&G UTP Management dedicated to UTP management. The fund has already gathered UTPs for a value of 19.3 million € originated from small- and medium-sized banks. P&G sgr plans to launch in the future other funds focusing on NPLs, UTPs and invoice financing.

Source: Bebeez

Translator: Cristina Ambrosi

UniCredit transferred the second tranche of UTPs to Illimity within its 600 mln € operation

13 November, Credit Village

UniCredit and Illimity Bank announced the transfer of the second tranche of UTPs as part of a broader operation totalling 600 million €. This last transfer was for a 153 million € GBV and concerned about 220 Italian SMEs. The total transacted value so far is 243 million €.

Source: Credit Village

Translator: Cristina Ambrosi

Polis Fondi and PWC to create a fund dedicated to non-performing exposures

05 November, Credit Village

Polis Fondi SGR and PwC Italia will create an alternative real estate investment fund, reserved and diversified, to manage non-performing exposures classified as bad loans (NPL) and unlikely to pay (UTP). The credits will be securitised through a special vehicle company.

Source: Credit Village

Translator: Cristina Ambrosi

Illimity acquired from UniCredit UTP portfolio for 153 mln €

13 November, In House Community

Illimity Bank acquired from UniCredit a UTP portfolio for a nominal value of 153 million €. This acquisition is part of a broader operation amounting to 600 million € in total and exclusively consisting of UTPs towards about 450 Italian SMEs.

Source: In House Community

Translator: Cristina Ambrosi

Intrum: new impaired loans for 100 bln € as a result of the pandemic

10 November, Finanza Report

Intrum Italia estimates new impaired loans totalling approximately 100 billion € in the next 12-24 months due to Covid. As a result, Italy’s Npe ratio will rise to 12%, against an average of 5% in the rest of Europe, in compliance with the ECB guidelines.

The Italian Npe market (NPL and UTP) currently amounts to 330 billion € GBV, 110 of which held by banks and 220 by vehicle companies and other players.

Source: Finanza Report

Translator: Cristina Ambrosi