• Transaction / Assets
    Montepio Sells Securitised Portfolio of NPLs
  • Seller
  • Buyer
  • € MM

Montepio Sells €580.6 Million of Bad Debt

6 November 2017

The transaction was the first securitisation of a portfolio of non-performing loans, which were attributed a risk rating, carried out in Portugal.

The Caixa Económica Montepio Geral placed a portfolio of non-performing loans in the amount of 580.57 million euros on the market. The credit securitisation operation, known as Evora Finance, was carried out by Caixa Montepio Évora, with asset management firm JP Morgan acting as the placement agent.

“Through the Evora Finance NPL transaction, 20,169 contracts were sold with an average value per contract of 28,786 euros,” the bank said in a statement. “The placement of equity and mezzanine tranches was completed on November 3.”

Moody’s and DBRS assigned an investment grade rating to the operation, which was the first securitisation in Portugal of a portfolio of non-performing loans that was attributed a risk rating. The rating agencies assigned the senior tranche ratings of Baa3 and BBB, respectively.

According to JP Morgan, the securitisation, which is part of CEMG’s non-strategic asset reduction process, as foreseen in its Strategic Plan 2016-18, shows that Portuguese banks are ready to dispose of assets.

Original Story: O Jornal Econômico – Leonor Mateus Ferreira

Translation: Richard Turner