486
486
  • Transaction / Assets
    Montepio Sells Portfolio of NPLs to Mimulus Finance
  • Seller
    Montepio
  • Buyer
    Mimulus Finance
  • € MM
    n/a

Montepio Sells Portfolio of Bad Debts Valued at 239 Million Euros

29 December 2018

After Novo Banco, it was the bank led by Carlos Tavares’s turn to announce the sale of a portfolio of bad debts, this time valued at 239 million euros.

Montepio just returned to the market, selling a portfolio of bad debts. Shortly after Novo Banco concluded the largest ever sale of non-performing loans by a Portuguese bank, the institution led by Carlos Tavares announced the sale of 239 million euros in toxic loans.

“After a competitive sales process,” the bank signed a public deed for the “sale of a portfolio of non-performing loans in the form of a direct sale to Mimulus Finance, a company based in Dublin and incorporated under the laws of Ireland,” the bank announced.

In a statement to the CMVM, Montepio noted that the “gross total sold was 239 million euros, comprising a portfolio of approximately 10,000 contracts.” The bank did not mention, however, the value of the sale nor its impact on the bank’s earnings.

Earlier this month, Bloomberg reported that the bank was looking to conclude the sale before the end of the year. However, the news agency stated that the sale would be larger: €370 million, divided into two tranches, one called “Atlas” with €250 million in loans, and another called “Cascais”,  with €120 million.

“The completion of this operation is the materialisation of Caixa Económica Montepio Geral’s strategy of continually reducing its non-productive assets,” Carlos Tavares stressed.

At the end of the first nine months of the year, Montepio had a non-performing exposure (NPE) ratio of 16.2%, with 2.18 billion euros in bad debts out of a gross loan portfolio of €13.5 billion.

Original Story: Economia Online – Paulo Moutinho

Translation: Richard Turner