Banco Santander releases more unproductive assets from an old acquaintance. The bank has sold to American fund Balbec Capital loans re-performing (RPL) unguaranteed to individuals and SMEs for a total balance of approximately 90 million eurosthey indicated to elEconomista.es market sources.
The sales structure used is unique because the entity will retain service on current loansalong with other mechanisms to avoid any reputational risk with clients, and is linked to a agreement that guarantees the fund the future purchase of loans that may default.
The debt “re-performing” It is made up of healthy financing, but which has been restructured or suffered any default in the last year and they have emerged as an asset that is gaining more and more weight in the portfolio sales market.
Despite being up to date with payments, the fact that it suffers payment incidents or has been restructured implies a consumption of provisions for the banks that find incentives to transfer the risk in the possibility of alleviating that burden, although they usually maintain their management due to the link to the customer. Many transactions are carried out, in fact, through securitizations that allow risk to be deconsolidated while preserving said link.
Santander has relied on Alantra for the operation that is now closing, an advisor that it has also relied on this year to execute the Turf Project and the Frankel Project and the sale in previous years of the Model Project or the Titan Project, among others.
The Cantabrian group is one of the most active entities in the divestment of unproductive debt. At the beginning of the year, the Newman portfolio was also transferred to Balbec, with real estate assets, guaranteed loans and a portion of unsecured loans from Santander Consumer Finance. In In just over a year, it has transferred unproductive assets worth more than 2.2 billion of different characteristics and that have been acquired by investors such as Fortress (Churchill portfolio), KKR (Frankel), PRA Iberia (Simoncelli) or the Sprint Project, awarded to GCBE (Cerberus) and Axactor.
The Balbec fund was created by a former Bear Stearns executive and is emerging as one of the most active investors in re-performing debt on the market. Between Sabadell, Cajamar and Abanca they have placed loans of this type for a nominal value of more than 600 million, acquired by the American vehicle.
The bank closed September with 35,723 million in delinquent financing, that is, 3.06% of a total financed portfolio that exceeds 1.17 billion euros. At the end of 2023 and according to its annual report (last published), it also had 5,506 million gross euros in foreclosed propertiesbacked by 3,058 million in provisions. The net balance thus amounted to 2,448 million euros.
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