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Novo Banco Confirms Sale of Nata 2 to Davidson Kempner

10 September 2019

Novo Banco confirmed the sale of Project Nata 2, a €2.7-billion portfolio of NPLs to Davidson Kempner for €191 million. The deal will result in a €106-million loss for the bank, while reducing its NPL ratio to 15%, compared to 20.7% in June.

Project Nata 2, which includes large loans to Ongoing, Joaquim Oliveira and Moniz da Maia, had an initial face value of €2.732 billion and a book value of €1.713 billion. Novo Banco sold the portfolio to Burlington Loan Management, a subsidiary of Davidson Kempner.

The deal includes an 89% discount on the gross book value and a 35% discount on its net value due to already high levels of impairment.

Original Story: Economia Online – Alberto Teixeira

Adaptation/Translation: Richard D. K. Turner