Portugal’s BPI has put another non-performing loan (NPL) portfolio up for sale, appointing KPMG as advisor.

The “Zinc” project consists of 99.8 million euros of NPLs, of which 77 million are unsecured and the remaining 22 million are considered risky but secured. This portfolio comprises NPLs from households (66%) and SMEs (34%) and is divided into two tranches.

 Tranche A is divided between households (58 per cent), SMEs (26 per cent) and insolvent SMEs (16 per cent). Tranche B, on the other hand, mainly concerns private borrowers with mortgage loans (93 per cent).7 The portfolio is quite granular, with an average loan size of around EUR 13.7 thousand. The private segment in tranche A has an average loan size of around EUR 7.3 thousand. Tranche B is secured by a number of real estate guarantees with a real estate value from the seller of around 37.6 million euros, 99% of which is classified as first lien.

The Bank has opened the non-vincible bidding for the month of April and expects to complete the sale process by mid-year.

Original Story: Jornal Económico | Author: Maria Teixeira Alves
Edition and translation: Prime Yield
Photo: jakub-zerdzick / Unsplashed