Banca Carige has inked an agreement with Credito Fondiario, a bank specialising in management of non-performing loans (NPLs), to divest a portfolio of €1.2bn mortgage and signature bad loans.
The consideration for the transaction is €265.7m, corresponding to a sale price equal to approximately 22.1% of the portfolio gross book value (GBV). Deal value is more than anticipated in the 2017-2020 business plan, which was approved on 13 September 2017.
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The transaction will raise Banca Carige’s total bad loan disposal volume to approximately €2.2bn as of the second half of the year.
The sale of the business is in line with its de-risking programme included in the business plan, which targets an overall NPL stock level of approximately € 3.1bn by 2020.
The transaction is scheduled to be closed by the end of 2017.
Separately, Banca Carige has signed an agreement with Credito Fondiario for the disposal of the branch of business consisting in the bad loan management platform, for around €31m. Additionally, the lender has inked a multi-year servicing agreement.
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By GlobalDataThe transaction will help the bank to improve its debt collection performance by using the industrial partnership with Credito Fondiario.
Subject to the approval of the regulatory authorities, the deal is expected to conclude by the end of the first half of 2018.
