Sareb looks at the securitization of its credits to developers

SAREB, Spain’s bad bank, is studying new solutions to keep cleaning from its books the toxic assets it inherited from the financial crisis. Securitize part of the Developer’s Credit on its portfolio is one of the solutions on the table, aiming to take advantage of the pull of demand now existing on the market and that in Spain has not had as much supply as in other European countries.

According to SAREB’s Finance & Strategy general-deputy, Iker Beraza, it isn’t the first time this solution is being analysed. «Since 2013 we’ve seen different studies about this theme, but since last year we observed there is more interest (in the market). We’ve been following operations of this sort that have been closed in Portugal and Spain and it seems that the prices can fit in», he explained.

In its intervention during the Annual Capital Market Conference that took place in Madrid, the responsible remembered that SAREB was established seven years ago with the purpose of selling €40 billion in toxic assets and since then has already halved that value. However, there are still other €20 billion to sell and, for that, it will be necessary to explore other ways but without getting out of the radar of larger institutional funds that are «traditional» buyers of this type of assets, such as Blackstone or Cerberus, he explained.

Original Story: El Español | María Vega 
Photo: Sareb Linked In
Edition and Translation: Prime Yield