One euro. This is the amount of the binding offer approved by the supervisory board of Ubi Banca for the purchase of three of the four good banks originating from the institutions saved at the end of 2015: Nuova Banca Marche, Nuova Banca Etruria and Nuova CariChieti.
Before the closing date, the seller, i.e. the national resolution fund of the Bank of Italy (resourced by almost the entire Italian banking system), is expected to undertake a recapitalization of the three institutions estimated at 450 million EUR. Once the operation is completed, UBI will take charge of a further capital increase of 400 million euro.
“The offer also – reads the press release – envisages the transfer without recourse by the three banks of around 2,2 billion euro of gross non-performing loans”.
Before the closing of the transaction - explains Ubi - the 3 target bridge institutions will have to present the following relevant parameters on an aggregate basis (with a tolerance threshold of 5%):
A) shareholders' equity at the reference date of at least €1.010 million, factoring:
– a level of coverage equal to at least 28,28% of gross probable defaults and at least 60% of non-performing loans;
– restructuring costs of 130 million euros;
– a provision representing the fair value of the contracts connected to the real estate transactions (“Consorzio Palazzo della Fonte” and “Fondo Conero”), quantified as a maximum of 100 million euros subject to possible revision;
– additional provisions for risks and adjustments to components of the assets of the Target Bridge Institutions, quantified at 100 million euro.
B) RWA (pillar 1) not exceeding €10,6 billion;
C) a weighted average Liquidity Coverage Ratio greater than 100%;
D) a weighted average CET1 ratio of no less than 9,1%.
