Banca Carige’s disposal of non-performing leasing portfolio
First leasing portfolio purchased by AMCO
Banca Carige’s derisking process continues
Genoa, 22 March 2021 – AMCO and Banca Carige announce closing of the transfer of a portfolio of non-performing loans arising from leasing contracts included in the scope of disposal defined by the parties in December 2019.
Legally effective since 20 March 2021 and economically effective since 1 January 2021, the transaction is related to the disposal of a portfolio of bad loans and UTPs of approximately €70 million of GBV, arising primarily from real estate leasing contracts.
The transaction is AMCO’s first purchase of leasing contracts and marks the substantial completion of Banca Carige’s radical derisking strategy set out in 2019. In managing the leasing portfolio, AMCO will leverage the expertise and capabilities of its Real Estate Division, which coordinates activities with the aim of enhancing the assets underlying the leasing agreements.
For Banca Carige, the disposal is a further improvement in asset quality, as reflected in its risk indicators that are already among the highest in the industry: pro-forma gross NPE ratio of 4.5%[1] and net NPE ratio of 2.4%1 (as at 31 December 2021, calculated pro-forma on the net and gross amount of assets sold).
AMCO was assisted by Orrick Herrington & Sutcliffe acting as legal advisor.
The parties have agreed to negotiate the transfer of an additional tranche of non-performing leasing exposures, to be possibly finalised by the end of the year.
[1] Operational estimate
