July 20, 2021 – Ana Custódio
In addition to Novo Banco’s €640 million Harvey portfolio, three more portfolios from major Portuguese banks, totalling €368 million, are up for sale.
After yesterday’s news that the non-performing loans portfolio of large debtors, belonging to Novo Banco, called Harvey Project, is already in the market, Brainsre news Portugal learned from market sources today the existence of three new portfolios going up for sale.
These include BCP’s Green portfolio worth 150 million euros, CGD’s €128-million Mercury portfolio, and Santander Totta’s €90-million Pool 54 & 55 portfolios.
Market sources indicate that BCP’s Green portfolio comprises two debtors and is at the binding offers stage. The Pool 54 & 55 portfolios are a single sale process, one being credit collateral and the other unsecured. These are also at the binding offers stage, and the sale is expected to take place in August or early September, as is the case of the Green portfolio. CGD’s Mercury portfolio consists of secured NPLs, and the teaser has recently arrived in the hands of investors, with the first phase of due diligence now underway.
The news comes after the announcement that Novo Banco will sell Project Harvey, a 640-million-euro portfolio of loans to large debtors in arrears.
Banks have been selling bad debt portfolios to meet European authorities’ demands to clean up their balance sheets, heading towards a 5% bad debt ratio in recent years. This concentration of portfolios in the market shows signs, on the one hand, of the need for banks to continue to resolve their non-performing loans, but also the continued appetite of international investors to acquire them, which is a very good sign for our market.
Translation: Richard D K Turner