Jewelry stores

EXCLUSIVE UniCredit set to sell €2bn in ‘UTP’ loans to DK-owned Prelios – sources

The logo of UniCredit Bank in front of the company’s branch in Kiev, Ukraine, March 30, 2016. REUTERS/Gleb Garanich

Join now for FREE unlimited access to Reuters.com

Register

MILAN, Feb 9 (Reuters) – Italian bank UniCredit (CRDI.MI) is set to sell 2 billion euros ($2.3 billion) worth of bad loans to bad loan firm Prelios after halting the process hiring a manager for the portfolio, according to three sources at the question said Wednesday.

The deal would mark a major milestone for Prelios, which bankers say is weighing a potential initial public offering or tie-up as its owner, US investment fund Davidson Kempner, seeks to cash in after its 2018 takeover of the Milan-based group .

A sale would reduce UniCredit’s problem loan burden by nearly 3.1% of total loans, Reuters calculated, from 3.6% at the end of December.

UniCredit and Prelios declined to comment.

The portfolio includes so-called unlikely to pay (UTP) loans, which are not yet in default but are unlikely to be fully recovered, with an average amount of less than 5 million euros each, said the three sources.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Valentina Za; edited by Agnieszka Flak

Our standards: The Thomson Reuters Trust Principles.


Source link