Banco Bpm's board of directors has accepted the binding offer received from Elliott and Credito Fondiario for a portfolio of bad loans worth 7,8 billion euro. The institute communicates it in a note, specifying that it has the right to reduce the amount of the portfolio to 7 billion.
For the bank led by Giuseppe Castagna it is a real turning point.
As part of the operation, a platform for the recovery of NPLs will be created. The new structure will be created in partnership with Credito Fondiario, which will have 70% of the platform, while Banco Bpm will retain 30%.
The platform will handle the management of the portfolio assigned in the context of the securitization transaction. The partnership will have a ten-year contract for the servicing of 80% of the new non-performing flows generated by the bank.
"The expected capital impact (CET 1) of the combined transactions (portfolio transfer and partnership on the platform), even in the event of application of the minimum fees, will in any case be lower than the capital benefit deriving from the reorganization of consumer credit" writes Banco Bpm.
