Banco Bpm announces that the securitization transaction (so-called "Project Exodus") was completed on Friday 15 June, through the issue, by the vehicle company for the securitization "Red Sea SPV SRL", of the following classes of securities ( ABS – Asset-Backed Securities):
• Senior notes amounting to Euro 1,656,505,000 million, corresponding to 32,5% of the nominal value and 33,1% of the book value at the cut-off date of 30.09.2017, which were assigned a Baa2 and BBB rating respectively by part of Moody's Investors Service and Scope Ratings GmbH;
• Mezzanine securities amounting to Euro 152,908,000 million;
• Junior securities equal to approximately Euro 50,969,000 million.
Senior securities will have a coupon of 6M Euribor + 0,6%. In relation to these senior securities, the procedure was activated for the issue, by the Italian State, of the guarantee on the securitization of non-performing loans pursuant to Legislative Decree 8/2016 ("GACS"). The deconsolidation for accounting purposes of the underlying non-performing loans is expected with effect from 30 June 2018, following the placement of the mezzanine and junior notes with institutional investors at the end of a competitive process currently nearing completion; in this way, in just 18 months, Banco BPM will exceed the derisking targets of the original plan.
Once the "Project Exodus" has been completed, the total disposals of bad loans carried out by Banco BPM starting from 2016 will amount to approximately Euro 9,5 billion, corresponding to approximately three-quarters of the new disposal target, increased from Euro 8 billion in the Strategic Plan 2016-2019 at Euro 13 billion.
The transaction was structured by the team of Deutsche Bank, Mediobanca Banca di Credito Finanziario and Banca Akros as Arranger. Chiomenti and Riolo Calderaro Crisostomo respectively assisted Banco BPM and the Arrangers for the legal aspects. The securitization vehicle company has appointed as Servicer and Special Servicer of the securitized portfolio Prelios Credit Servicing SpA, which will perform credit management, administration, recovery and collection activities in the name and on behalf of the SPV itself.
