CaixaBank resumes the sale of 576 million in mortgages that was halted by covid

After the Louvre and Hermitage projects launched in 2020, the Catalan entity has launched the MoMA Project, with which it hopes to sell to opportunistic funds delinquent mortgages valued at 576 million, according to financial sources consulted by El Confidencial newspaper.

The second-largest Spanish group did not comment. These are doubtful mortgages (with more than 90 days of non-payment) that it had already tried to sell before covid-19 was extended, within another larger portfolio known as Tackle, according to the sources consulted.

Although they are pre-Bankia assets, this is the first operation that CaixaBank has put on the market since it absorbed the nationalised entity. The merger has increased the group’s non-performing loans from 8.7 billion to 14.1 billion and net real estate assets (discounting provisions) from 1.1 billion to 2.5 billion. In gross terms, this would be around 4.3 billion. Thus, the group chaired by Goirigolzarri has problematic assets valued at 18.4 billion on its balance sheet, which it needs to lighten before the default derived from the current pandemic crisis picks up.

Even so, the pressure from the European Central Bank (ECB) for all banks to get rid of toxic assets is at its maximum. CaixaBank has therefore decided to speed up this MoMA operation and could be preparing others to close before the end of the year.

This operation covers 5,700 credits from 3,700 creditors who initially requested 576 million, according to information distributed by KPMG to investors. The unpaid amount stands at 495 million. The portfolio is secured by 4,500 properties, which are mainly located in Madrid, Barcelona and Seville, and have a valuation according to the Big Four of 775 million, well above the value of the credits.

Singular Assets
The transaction includes some higher quality assets – properties worth more than one million euros – in locations such as Mallorca, Boadilla del Monte, Pozuelo de Alarcón, Costa Brava, Xàtiva and Barcelona. This operation represents a new litmus test for the sector, after a standstill in the sale of unpaid mortgages caused by operations carried out by Sabadell in 2020, according to the sources consulted. Thus, this entity lowered prices to a level that made it difficult for other banks to go on the market, due to the impact it could have on provisions.

Original Story: El Economista | J. Zuloaga
Photo: CaixaBank website
Translation & Edition: Prime Yield

Santander Brasil is said to have bought R$4bn in bad debts from Bradesco

Return Capital, a company owned by Santander Brasil (SA:SANB11), is said to have bought over BRL 4 billion in overdue and unpaid loan portfolios from Bradesco (SA:BBDC4), the newspaper Estado de Sao Paulo said, citing sources.
According to the publication, the operation with the so-called bad loans was advised by consulting firm Deloitte.

Original Story:
Photo: Bradesco Linked In
Translation: Prime Yield

Piraeus announces the sale of Sunrise I portfolio of Non-Performing Exposures amounting to €7.2bn Gross Book Value

Piraeus Financial Holdings S.A. (“Piraeus”) announced to have reached definitive agreements with Intrum AB (publ) and Serengeti Asset Management LP for the sale of 49% and 2% of the mezzanine and junior notes of the Sunrise I NPE portfolio respectively.

The Sunrise I portfolio consists of retail and corporate NPEs. It comprises c.205k loan exposures and a gross book value of €7.2bn, as at 30.09.2020. 

The implied valuation for the Transaction, based on the nominal value of the senior notes and the sale price of the mezzanine and junior notes, corresponds to 34.5% of gross book value. 

The transaction is part of the wider Sunrise transformation programme Piraeus announced on 16 March 2021 and underlines the rapid progress in Piraeus’ c.€19bn NPE clean-up plan, leading to a single-digit NPE ratio within less than 12 months. 

Piraeus Bank has already filed an application for the inclusion of the Sunrise I senior notes in the Hellenic Asset Protection Scheme (the “Hercules” scheme). The application relates to the provision of a guarantee by the Greek State on the senior notes of c.€2.45bn.

The Transaction will be classified as held for sale in Q2.2021. Together with Phoenix and Vega NPE transactions that are also pending completion this quarter, the Piraeus NPE ratio will radically drop to c.23% from the reported 46% of March 2021. Subject to the required approvals, the loans within the Sunrise I securitization perimeter are expected to be derecognized from Piraeus Financial Holdings consolidated statement of financial position within H2.2021.

The expected capital impact of the Transaction stands at c.2.7 percentage points over the December 2020 total capital ratio, taking into account the P&L effect and the RWAs relief of the Transaction.

Original Story: Piraeus Site
Photo: Piraeus Bank
Edition: Prime Yield

Santander prepares to sell a portfolio of 1,500 million assets

The Spanish bank is negotiating two sales transactions to Cppib and Cerberus without a competitive process to clean up its properties in Spain.

The bank chaired by Ana Botín is negotiating two sales of troubled assets worth €1.5 billion with the Cppib and Cerberus funds, according to El Confidencial. The bank is negotiating both through a non-competitive process, without giving other investors the option to compete with the funds. These two processes are in addition to a portfolio that the bank already has on the market: the EUR 600 million Talos Project, for which it has received offers from Fortress, Marathon and Tilden Park. In total, Santander has begun the sale of assets worth more than EUR 2,000 million. Through these operations, the bank seeks to reduce its non-performing loans, which are among the highest in the country since the purchase of Popular. The operation underway with Cppib, a Canadian pension fund, covers the mortgages it ruled out buying until 2020, when it reached an agreement with Santander. The fund entered the Spanish market three years ago with the purchase of non-performing loans. On the part of Cerberus, the negotiation would cover unpaid credits worth 500 million euros. Santander has started selling assets worth more than 2,000 million euros.

According to a study by Prime Yield, the sale of bad loans by banks will soar in 2021 and could exceed 7,100 million euros, continuing with the strategy initiated last year by which between the second and third quarters they reduced the stock of NPLs (Non Performing Loans) by 2,400 million euros. Up to March, 700 million euros were transacted. Despite the banks’ efforts to get rid of the product, Spain continues to be the third country in the European Union with the most NPLs. Leading the way is France, with 125.4 billion NPLs, accounting for 2.3% of its total portfolio, and Italy, with 98 billion NPLs, 5.4% of its total stock.

Original Story:
Photo: Website Grupo Santander
Translation: Prime Yield

Santander prepares to sell €700 million of distressed commercial loans

Santander is preparing to sell €700 million worth of doubtful trade receivables, financial sources have confirmed to elEconomista. The divestment is, according to the same sources, at an initial stage and is being designed if it will be carried out as a block sale or divided into different portfolios, something that will be decided depending on the appetite of investors interested in these credits. In any case, the idea is to sell them during the course of this year.

With this operation, Santander recovers the pace of sales of non-performing loans, after a year in which the sector was at a standstill due to the pandemic. Santander’s real estate activities unit, integrated within Spain, has EUR 2,781 million in gross customer loans for real estate activity on its balance sheet, of which €924 million are classified as non-performing. Last year it only reduced €24 million of the total with portfolio sales, recoveries and subrogations by third parties, compared to the €1,685 million it reduced in 2019 or the €1,267 million in 2018.

Despite this slowdown in the drain on this type of assets, Santander closed the first quarter of the year with an NPL ratio of 3.20%, lower than in December, when it stood at 3.21%. At the level of Spain, the area with the highest NPL ratio of the whole group, it also continued to fall from December 2020 to March 2021, from 6.23% to 6.18%. This ratio could rise as the loan moratoriums granted expire. The group approved loan deferrals totalling 112 billion, of which 96 billion have expired, and of these, 5% have been classified as doubtful.

Original Story: El Economista | Araceli Muñoz and Eva Díaz
Photo: Santander Facebook
Translation: Prime Yield

Novo Banco’s owner sold “Vilamoura” to Arrow for €100M

The US-based Lone Star has sold “Project Vilamoura” to a group of investors, including British fund Arrow Capital and businessmen Filipe de Botton and Alexandre Relvas.

The US-based Lone Star has closed the sale of the Vilamoura Project – which includes, literally, a part of Vilamoura – to British Arrow Capital and a number of investors, including Filipe de Botton and Alexandre Relvas, according to ECO. The “package” includes the Vilamoura marina, two companies and 21 plots of land with construction potential. The operation was closed for about 100 million euros, a value well below what was being asked initially, since the project also included Cidade Lacustre (expansion), which ended up being rejected at the end of last year.

It was in 2015, in a “competitive” process, that the owner of Novo Banco bought these assets. Two years later, at the end of 2017, it put them on the market for sale. Among some obstacles, it took another three years to get them sold. The deal was closed last week, according to ECO, and should have been around €100 million, a figure below the €180 million that Lone Star was initially asking for.

On the buyer’s side is the British fund Arrow Capital, which owns the Portuguese companies Whitestar and Norfin, and a number of private investors, including Filipe de Botton and Alexandre Relvas, partners of Logoplaste, and João Brion Sanches, founder of Norfin along with the two previous entrepreneurs. Contacted by ECO, both the Arrow Group and Filipe de Botton declined to comment.

The project comprises 100% of Vilamoura World’s share capital (the company that manages all these assets), 21 plots of land for development, 49% of Inframoura (the municipal company that manages Vilamoura’s public works) and, finally, the marina, which is the most interesting asset. “Opened in 1974, it is the largest in the country with 825 berths,” reads the project teaser to which ECO had access. The marina concession is valid until 2060.

In recent years, several projects have been completed in Vilamoura, resulting in 704 homes in the pre-crisis period (Victoria Boulevard, The Victoria Gardens, 1st phase of L’Orangerie, Villa Rosa Golf, Monte Laguna, The Victoria Residences and Laguna Golf) and 219 in the post-crisis period (Gardens Vilamoura, Laguna Village, 1st phase of Uptown, 2nd phase of L’Orangerie, Villa Nature and the 1st phase of Central).

For the future, among the various projects planned, there will be 3,658 housing units, totalling 566,374 square metres, says the teaser.

Original Story: Eco |Eco News
Photo: Vilamoura World Site
Edition: Prime Yield

National Bank of Greece sells €174 million Romanian NPLs portfolio to Bain Capital Credit

National Bank of Greece (NBG) has completed the disposal of a 174 million euro ($212 million) Romanian-risk corporate non-performing loans (NPLs) portfolio to Bain Capital Credit.

The transaction is capital neutral, NBG said in a press release.

NBG announced the NPLs sale in December.

At the time, NBG said that the transaction is being implemented in the context of NBG’s non-performing exposure deleveraging strategy and in accordance with the Operational Targets submitted to the Single Supervisory Mechanism and has a neutral capital impact to the bank.

The National Bank of Greece is a global banking and financial services company with its headquarters in Athens, Greece. Some 85% of the company’s pre-tax pre-provision profits are derived from its operations in Greece, complemented by 15% from Southeastern Europe, according to its website.

In January 2020, ​NBG announced the completion of the sale of its 99.28% stake in Banca Romaneasca to Export-Import Bank of Romania (EximBank).

The Greek group is now present in Romania with leasing company NBG Leasing and Insurance company Garanta Asigurari, according to its website.

Original Story: | Nicoleta Banila
Photo: Photo by Michalis Famelis / Wikimedia Commons
Edition: Prime Yield