Caixa puts for sale more than €500 million in bad debt

Portugal’s State bank, Caixa Geral de Depósitos, hired KPMG to trigger the sale of a €500 million non-performing loans portfolio, including both secured and unsecured assets.

The package, which has not even been named, is composed of €100 million in secured credit (with collaterals) and another €400 million unsecured debt. According to the newspaper, the bank already named KPMG to look for potential buyers.

This process was launched while another operation – also with the support of KPMG – is on the way and about to be closed: the sale of the “Saturn” portfolio, valued at almost €600 million and for which CGD has received non-binding proposals from the investors like LX Partners, Cabot Financial and EOS Group. 

Though Caixa Geral de Depósitos (CGD) has one of the lowest NPL ratios in the Portuguese market, that does not prevent it from being the market’s biggest seller of problem asset portfolios.

Original Story: Jornal Económico | Maria Teixeira Alves 
Photo: Caixa Geral de Depósitos Headquarters
Edition and translation: Prime Yield