Santander Sells €262 Mn in NPLs to Link Financial

7/05/2014 – Expansion

Santander turns to international funds again. The entity directed by Emilio Botin has just closed the sale of €262 million in nonperforming loans from its branch Santander Consumer Finance to British fund Link Financial.

The operation, named “the Ascari Project”, allows Santander to cleanse its books, while Link Financial pays bargain price for the portfolio (from 3% to 5% of the nominal value) with hope of recovering at least half of the loans. The portfolio does not include credits granted by the finance company of El Corte Ingles. The bank bought 51% of the financial unit for €140 million in October last year.

On the other part, Link Financial has been present on the Spanish loan market over the past eleven years. In 2012, the fund acquired a default portfolio of Barclays.

At present, there are two other portfolios on sale in the market: “the Luna Project” by Fortress selling €1 billion in NPLs and “the Interlagos Project” by TPG, containing another €1 billion in default of Santander.



Original article: Expansión (by Jorge Zuloaga)

Translation: AURA REE