The Deva fund has paid €52.3 million to Novobanco for its Harvey Project, a non-performing loans (NPL) portfolio with a gross value of €164 million.

This was one of the main NPL portfolios still owned by the Portuguese bank by the end of 2021, which had been previously put in the market with an initial gross book value close to €640 million.

However, in the final stretch of the year the Portuguese bank decided to recast the portfolio composition, excluding some of the initial credits. 

The transaction was agreed with the Deva fund for €52.3 million – less than a third of the gross book value of the portfolio, which was €164.4 million.

In the statement sent to the Securities and Exchange Commission (CMVM), the financial institution writes that the sale “should have a marginal impact on Novo Banco’s capital position and income statement for 2021”.

Novo Banco assures that the sale contract “represents a reduction of €162.6 million in its stock of NPL.

Negócios understands that with this  operation the bank should reduce its NPL ratio to 5%.

Original Story: Jornal de Negócios | Hugo Neutel
Photo: Novo Banco website
Translation & Edition: Prime Yield