Kutxabank has sold one problematic promoter risk portfolio worth 700 million euros to an entity managed by Bain Capital Credit LP. These are dubious assets and bad loans to real estate developers with which the entity will reduce by almost 50 points the late payment ratio of the group, which is below 4%.
In a statement, Kutxabank has reported that the operation has been made through a competitive bidding process with the participation of the investment bank Alantra, responsible for coordinating the sales process. The group adds that the operation "occurs at a time when there is a great investor appetite for this type of asset»
This is the first time that the entity proposes a transaction of these characteristics, which has had "a non-significant positive impact in terms of results for the group". Kutxabank has not offered any concrete data on the proceeds of the operation, which in any case will allow reduce costs associated with litigation and to maintain the focus on the development of traditional banking business activity.
The expected impact on the Group's default ratio is almost 50 basis points, which falls below 4%. In addition, the bank has indicated that the sale of the portfolio has a positive impact on the CTE1 "fully loaded" capital, which improves by approximately 10 basis points.