Itaú Unibanco and Citi have placed up for sale portfolios of non-performing loans of companies, boosting the Brazilian NPL transaction markey over the 2nd quarter. With a market traditionally concentrating in NPLs in the household segment, the disposal of corporate portfolios is seen as an evolution, thus attracting specially international specialized funds, the so–called “vulture capital”. As for Itaú, the bank has launched into the market for sale about 40 companies undergoing judicial reorganization.

The institution has already received offers from two interested parties and expects to close the operation by July. No big case of corporate reorganization is included in this lot.

Citi, which has been focusing only on the corporate segment in Brazil after selling its retail operation to Itaú, is putting into the market some R$70 million in medium-sized company’s loans. This process is now at an initial stage. Citi and Itáu have both not commented on this information.

Original Story: Estadão/Economia (Coluna do Broadcast)
Photograph: Shutterstock
Translation and Edition: Prime Yield