NPL&REO News

Intrum, Cerberus and Servdebt compete for Sabadell’s €900 million portfolio

Over the last few years, Banco Sabadell has became one of the most active sellers of non-performing loans (NPL) and its real estate collaterals (REO) portfolios in Spain. And, now, its goal is to sell another NPL portfolio worthing €900 million until the end of the year.

The Spanish bank has already named KPMG to be its advisor in the operation of this so-called “Project Vento”, which sales process has already started. And at least three binding offers have already been presented.

Having already acquired other assets from Sabadell, including its servicer platform Solvia, Swedish fund Intrum is one of the competitors. Also very active within the Spanish bad debt market, the US fund Cerberus is other of the interested; having presented its proposal through its credit recovery subsidiary in Spain, Gescobro. The third offer was presented by the Portuguese company Servdebt, specialized in the management and recovery of unpaid credit and, until now, an unknown name for the acquisition of this type of assets in Spain.

According to some market sources, this deal should be completed until the end of November, and it will reflect a discount between 97% (the average discount rate for the sales closing these days) to 95%.

Project Vento is constituted by several unpaid loans that Sabadell has taken out of its balance sheet in recent years and that are provisioned at 100%, which is why its sale would allow the bank to record profits since the losses from this portfolio were already reported in past financial years.

Original Story: Cinco Dias | Angéles Alconada
Photo: Sabadell Site
Translation & Edition: Prime Yield

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