Montepio bank announced on 31 December the sale of a bad debt portfolio (Non-Performing Loans) in the amount of 253 million euros, including 10,318 on-balance-sheet and off-balance-sheet contracts.
The deal was made «after a competitive sale process», through the signing of «a public deed of sale of a portfolio of non-performing loans, in the form of direct sale to the entities LX Investments Partners III, BTL Ireland Acquisitions II Designated Activity Company and BTLP Acquisitions I Unipessoal, Lda, companies validly incorporated and governed by Portuguese law and headquartered in Portugal”, can be read in the note sent by the bank to the CMVM.
According to Montepio, «after the total derecognition of the credits, the estimated impact of this sale on Banco Montepio's results will be immaterial, representing, however, an important reduction in non-productive exposures, contributing to a decrease of 1 percentage point in the NPE ratio ».
For now, the transaction «contributed to an increase of 3 bp. in Banco Montepio's Total Capital ratio, consolidating the strategy launched by the Board of Directors of continuous reduction of non-productive assets and reinforcement of capital ratios», it can also be read.