Prelios finalised the agreement for the acquisition of a portfolio of UTP (unlikely-to-pay) assets owned by the Intesa SanPaolo Group.
Mediobanca, Jp Morgan, Morgan Stanley, Natwest, Ubi and Banco Bpm underwrote Prelios’ financing for the sale and securitisation of the UTP portfolio. The value of the acquired portfolio amounts to EUR 3 billion of gross value. The finalised price is EUR 2 billion. Avalon has assessed the value of the real estate collateral underlying the loans.
The transaction will achieve 80 per cent of the impaired loans reduction target in the first 18 months of the four-year period 2018-2021. No extraordinary charges for shareholders are expected.
Rothschild and Banca Imi handled the deal for Intesa Sanpaolo. Mediobanca, Houilian Lokey and Jp Morgan on behalf of Prelios. Kpmg and Pwc handled the industrial aspects.