Liberbank agrees NPL sale to Bain Capital Credit/Oceanwood

By James Buckley - Monday, October 23, 2017 9:55

Liberbank has signed a binding agreement, following a competitive process, to set up a company with Bain Capital Credit and Oceanwood to manage, develop and dispose of a portfolio of real estate foreclosed assets of Liberbank and its group, in which Liberbank will hold, directly or indirectly, 9.99% of the capital.

Bain Capital Credit will hold 80% of the capital and Oceanwood will hold the remaining 10.01%.

Liberbank will transfer gross real estate assets amounting to €602m, of which €180m are land and work-in-progress, €80m tertiary and €342m residential. 

The management of the assets transferred to the company will be done by Bain Capital, upon the moment of completion of the transaction, which is expected to be before December 31 2017, once all conditions precedent have been fulfilled. 

Liberbank has enough provisions as of 30 September 2017 to offset the negative impact of the execution of this portfolio sale. 

The completion of the portfolio disposal, together with direct sales of €209m of gross real estate assets in the third quarter of 2017 (of which €90m were land and work-in-progress) will allow Liberbank to reach its real estate assets reduction target of over €800m in the second half of 2017 (totalling €1,045m year to date, excluding direct sales during the fourth quarter of 2017)

Liberbank expects to reach the following proforma ratios as of September 30 2017.

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