The Board of Directors of Banco BPM Spa, which met today, resolved to proceed with the sale without recourse of a portfolio of non-performing loans backed by collateral ("secured") - the so-called "Project Rainbow" portfolio - for an amount gross nominal value of approximately €693 million as at 31 March 2017.
The sale will be completed by 30 June 2017, after signing a contract with an Algebris vehicle, one of the most active financial operators in the sector. The transaction will bring to approximately €2,5 billion (€2,7 billion taking into account the pipeline of “single name” disposals nearing completion) the total disposals of non-performing loans made starting from 2016, as part of the risk included in the 2016-19 Strategic Plan which envisages the sale of €8 billion of NPLs by 2019.
The operation stands out in the Italian NPL market for the composition of the portfolio (entirely backed by mortgage guarantees) combined with the size of the same; moreover, the valuation attributed to the assigned receivables is far higher than that envisaged in the Strategic plan. The transfer portfolio, made up of positions with underlying properties for commercial, hotel and residential use, has a balanced distribution in terms of valuation of the individual assets.
The operation comes at the end of a competitive process which saw the participation of around 30 international investors. Banco BPM made use of the assistance of Banca Akros and KPMG Corporate Finance as financial advisors and of Studio Chiomenti as legal advisor.
