BFF is in talks with Pimco and other funds regarding the 1.2 billion securitisation
Following interest from BPER and Amco in the custodian bank and the factoring business
Bff Bank is in talks with several investors regarding the sale of the riskiest tranches of a €1.2 billion securitisation, a move necessary for the restructuring of the struggling bank. The portfolio comprises non-performing loans owed by public-sector entities.
According to Bloomberg, potential buyers include Pimco and Pollen Street Capital, whilst Fortress, Davidson Kempner and Cerberus are also said to have expressed an interest.
The structure of the transaction is still being finalised, but it appears that the junior tranche, which carries a higher level of risk, could be distributed amongst several investors.
The sale price is expected to be lower than the book value of the receivables. Nevertheless, the transaction should help to improve the bank’s capital ratios.
The timeline is yet to be finalised, but it is possible that an agreement could be reached with the investors by the beginning of November.
