Italian private debt and NPL market participants keep the deal flow steady, and new service providers join such scene.
According to BeBeez database, in 2018, Italian lenders sold portfolios of gross NPLs amounting to 63.3 billion of euros (See here a previous post by BeBeez)., By the end of 2018, lenders may sell NPLs portfolios worth 38 billion.
According to a Report that PwC issued in June 2018, the amount of Gacs-backed NPLs on the lenders books is increasing as well as the credit to businesses (See here a previous post by BeBeez). The relevant amount of NPLs and the time-consuming procedures for recovering credits backed by real estate assets are important issues for market participants. Banca d’Italia, the Italian central bank, aims to incentivise lenders to actively managing the real estate warranties on credits. For this reason, Milan-listed corporate data provider Cerved and Italian law firm La Scala created through a joint venture a provider of legal services for handling banking credits (See here a previous post by BeBeez). Cerved will have a minority of the firm, while the partners of La Scala will hold a controlling stake.
Banco Desio and Banca Popolare di Spoleto completed the securitization of a portfolio of NPLs worth one billion of euros (See here a previous post by BeBeez). The spv vehicle issued three kinds of abs:
- Gacs-backed senior for 288.5 million or 28.8% of the gross value that will have a rating BBB Low and BBB from DBRS Ratings and Scope Ratings, and will pay a coupon with a rate of 6 months euribor plus 40 bps;
- Mezzanine for 30.2 million (B Low and B) with a coupon of 6 months euribor plus 800 bps;
- Junior for 9 million.
Younited Credit launched Younited Italy, an Italian fund for peer to peer lending (See here a previous post by BeBeez). French firm EuroTitrisation will manage the fund while Société Generale Securities Services will act as depository bank. Last year in May, Younited Credit hit the target for the issuance of loans and financing worth 100 million of euros.
Unicredit sold to MBCredit Solutions (part of Mediobanca) two portfolio of unsecured NPLs of the consumer segment worth 124 million and 80 million of euros (See here a previous post by BeBeez). After this acquisition, MBCredit Solutions holds NPLs for 4.4 billion.
AC Milan’s owner Yonghong Li failed to pay 32 million of euros by 22 June for the capital increase of the once glorious Italian football team (See here a previous post by BeBeez). New York’s hedge fund Elliott will pay this amount, but it will become the full owner of the club if it won’t receive a reimbursement by 10 July. Chinese businessman Yonghong Li is looking for an investor that may pay back this first tranche and further 303 million by October 2018 to Elliott and therefore is holding talks with US Thomas Ricketts, the owner of baseball team Chicago Cubs, and his family and Italian American media entrepreneur Rocco Commisso, the owner of Mediacom and soccer team New York Cosmos.
Banco di Sardegna securitised a Gacs-backed portfolio of NPLs for a gross value of 900 million of euros (See here a previous post by BeBeez). Secured credits were 53% of the portfolio, while 47% was unsecured and sold at a price worth 28.10% of the gross value or 253 million. In the next three years, Banco di Sardegna will sell up to 4 billion of NPLs, and by the end of 2018, the lender will securitise 2 billion of problematic credits.