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