0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Credit Strategy sections
Topics ▼
Topics ▼

Trending news

Sections ▼
Shop for events
Shop for events
Search

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Intrum confirms offer to Intesa Sanpaolo for creation of €10.8bn NPL servicer

Intrum Justitia AB has confirmed a binding offer to Intesa Sanpaolo over the creation of a joint server of non-performing loans (NPLs) in the Italian market.


Calum   Fuller

Share on LinkedInShare on TwittereCard
Calum   Fuller
Share on LinkedInShare on TwittereCard

Should the offer be accepted, it would see a merger of Intesa Sanpaolo’s NPL recovery operations and all of Intrum’s current Italian operations into a servicer of NPLs in Italy. Intrum would own 51 percent of the joint venture.

 

Under the proposal, the joint venture would enter into a 10-year exclusive servicing agreement with Intesa Sanpaolo for the vast majority of the bank’s new NPL inflow during this period.

 

Intrum will consolidate the joint venture in the financial reporting and, together with a co-investor, will acquire a 51 percent participation of a NPL portfolio with a gross book value of €10.8bn (£9.3bn) to be deconsolidated from Intesa Sanpaolo.

 

The portfolio will be held by a securitisation special purpose vehicle (SPV). Under its offer, Intrum will own 80 percent of the 51 percent of the holding in the SPV. It added a co-investor has committed to co-invest for an amount corresponding to the remaining 20 percent of the 51 percent holding in the SPV.

 

The SPV will be financed by non-recourse senior asset backed notes. Intrum said it will not consolidate the SPV in the financial reporting.

 

Intrum’s estimated total net cash investment for its holding in the servicing platform and its interests in the SPV is €670m. The net investment envisages no further syndication. Intrum added will make an initial payment of €156m at the end of April 2018. The remainder of the purchase price will be paid at closing, which is expected at year-end 2018.

 

Along with approval from Intesa Sanpaolo’s board, the transactions are subject to authorizations being received from the relevant authorities.

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Listen again: All the Experian webinars in one place

Listen again: All the Experian webinars in one place

iwoca adds Barclays and HSBC to Open Banking connections

iwoca adds Barclays and HSBC to Open Banking connections

Barclays customers now able to “switch off” certain spending

Barclays customers now able to “switch off” certain spending

Upcoming events

ENJOY READING?

Fast lane: Why IFRS 9 is already accelerating debt sale activity
20/20 vision: How Credit Strategy is marking 20 years of representing credit
Rise of the machines
Cultural evolution: How utilities firms overhauled their approach to vulnerable customers
Standing their ground: Amid increased scrutiny from both MPs and regulators, BrightHouse is a lender very much under the microscope.
Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group