Banca Clv steps up its investment banking activities; approval given for a 600 million securitisation of NPLs
The secondary market for NPLs, as CEO Paolo Gesa explained to Radiocor, “is a segment of particular interest, in which we intend to continue investing expertise and resources through partnerships with qualified industry players such as A-Zeta”
(Il Sole 24 Ore Radiocor) – The spotlight is back on the non-performing loans market. This time, it is Credito Lombardo Veneto that is making a move, as it expands its role as an investment bank in the structured finance sector. As Radiocor can reveal, the bank has in fact completed a securitisation of a portfolio of NPLs with a gross nominal value of approximately 600 million euros. This is a new move in the Italian secondary market for non-performing loans, with the aim, as CLV explains, of strengthening its position in the financing of complex transactions. The transaction forms part of the development of the activities set out in the Business Plan, broadening the scope of the operations carried out to date.
The securitisation was carried out through Sapa Spv Srl, a special purpose vehicle that acquired a portfolio of receivables previously held by Saphira Spv Srl. The portfolio consists mainly of individual NPLs (i.e. arising from banking and financial relationships and subsequently traded on the secondary market). In summary, the financial structure involves the issue of asset-backed securities of various classes. Credito Lombardo Veneto has underwritten the senior tranche, whilst the junior tranche has been underwritten by Ar Holding Spa and, for a minority stake, by the bank itself acting as ‘risk retainer’. The industrial partner in the transaction is A-Zeta Srl, which will act as ‘special servicer’, taking responsibility for the operational activities of managing, realising and recovering the loans.
With this move, explains Paolo Gesa, CEO of Credito Lombardo Veneto, “we are reaffirming our ambition to develop” the institution “as a bank capable of combining traditional lending activities with a significant investment banking and structured finance component ”. The secondary market for NPLs “is a segment of particular interest, in which we intend to continue investing expertise and resources through partnerships with qualified industry players such as A-Zeta”.
