Unicredit and Prelios have signed an agreement for the management of Utp credits, Unlikely to Pay. The agreement came at the end of a selection process launched by the bank led by Andrea Orcel and aims to maximize returns to performing status and the consequent positive impact on the bank's customers, with benefits on the real economy and on the Italian productive and social fabric . The agreement "also represents for Unicredit an important step in the strategy of valorising the non-performing portfolio, while at the same time allowing a reduction in the stock of non-performing loans", the institute said in a note.
The details of the Unicredit-Prelios agreement on utp
Going into detail, the agreement provides for Prelios to be the preferential partner in the management of Utp credits of the corporate segment held by Unicredit: an initial stock under management for the year 2022 will be joined by future flows of new UTP credits for the following six years. At the same time, Prelios assisted Unicredit in the sale of e securitization of a Utp credit portfolio, mainly in the Corporate and SME segments, amounting to approximately 2 billion euro gross of adjustments, of which master e special service pursuant to law 130/99.
Thanks to this securitization operation, Unicredit will be able to achieve the full accounting deconsolidation of the portfolio in the second quarter of 2022. Main investor in the notes mezzanine e junior is the American fund Christofferson, Robb and Company (CRC).
Unicredit was assisted by PwC and Deloitte as financial advisors, by Chiomenti, BonelliErede and Uniqlegal as legal advisors. Prelios was assisted by Bain & Company as strategic advisor, KPMG and EY financial advisors, CRCCD and Linklaters legal advisors.
The comments of Orcel and Palenzona
“The partnership with Prelios represents a decisive step forward in tackling the potential difficulties of post-pandemic Italian companies in a structural way. We are constantly committed to identifying the most effective tools to support our customers, in this case favoring their return to better performance along an economically sustainable growth path over time" he commented Andrea Orcel CEO of Unicredit.
"The choice of UniCredit reinforces our position as market leader in specialist UTP credit management," he said Fabrizio Palenzona, president of the Prelios group, “and allows us to make our action in support of the country's real economy even more effective, helping to bring the largest possible number of companies back to performing status. This is the mission that Prelios wants to continue pursuing with ever greater determination and efficiency, collaborating with the credit institutions and all the subjects involved. Personally, finding myself a partner of the Bank that I helped found is a source of great pride and equal responsibility".
