Lindorff Buys Santander´s Loan Portfolio From Fortress & TPG

5/06/2014 – ExpansionPro

Nearly €2 billion worth of non-performing consumer loans granted by Santander has fallen into hands of the Norwegian group. In fact, the defaulting credits lot consisted of two equal, €1 billion portfolios one put up for sale by TPG (the “Luna Project”) and the other by Fortress (the “Octavia Project”). The funds bought their parts few years ago.

This sort of sale usually involves application of an up to 98% discount.

Now Lindorff will try to improve the recovery ratio and make some profit from the acquisitions. For sure the purchase of Reintegra, collection firm of Santander at the beginning of 2013, will be of great help. Together with the company, Lindorff obtained two call centers and 700 employees in Valladolid and Madrid.

When it comes to Santander, the bank has just launched two new loan portfolios embraced in the “Yas Marina Project“. Both are worth of €300 million and contain non-performing loans, one of them gathers those lent to consumers while the other to SMEs.

Few months ago, the financial group sold €262 million in defaulting credits to Link Financial.


Original article: ExpansiónPro (by Jorge Zuloaga, Miércoles 4 de Junio 2014, pp.18)

Translation: AURA REE