BAD LOANS AND OTHER NPES ALL 2020 DEALS - (FINAL DATA) JANUARY 2021 - BEBEEZ
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January 2021
Bad loans and other NPEs
All 2020 deals
(final data)
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 1
Final rush of non-performing exposure transactions at the end of 2020, with more than 10 billion euros of gross loans changing
hands in the ten days leading up to Christmas 2020. This figure is calculated by BeBeez. On 31 December 2020, in fact, the total value of
portfolios sold on the primary and secondary market had exceeded 42 billion euros GBV for 192 transactions, but in mid-December
2020 the total was only 76 transactions for €28.7 billions (see here the Preliminary Report NPL 2020). The recovery of activity did
not, however, make it possible to reach the record of 2019, a year in which 82 deals were announced for just under €52 billions (figure
revised upwards from the preliminary figures of €50 billions in BeBeez Npl Report 2019, published in January 2020). Since last June, in
particular, there has been a great acceleration in activity that had stalled due to the Covid emergency, so much so that by the end of April
only 19 deals worth €1.8 billion had been mapped.
Transactions on UTPs in 2020 totalled €9.85 billion and thus accounted for about a quarter of the total transactions mapped in the
year, in terms of gross value. In 2019 they had involved portfolios totalling €10.5 billion gross, so about a fifth of the total. In the
calculation, BeBeez did not include the 30 December 2020 issue of €908 million asset-backed notes related to Unicredit's Sandokan 2
Project, because the underlying loans, up to €2 billion, were gradually sold by the bank to the securitisation vehicle Yanez spv srl as of
June 2019 and therefore had been included in the 2019 statistics (see other BeBeez article).
According to Bank of Italy data, there were €130.6 billion of gross impaired
loans on the books of Italian banks at the end of June 2020, of which €58 billion
was UTP, up from €61 billion of UTP at the end of 2019, out of a total of €135 billion
of impaired loans. PwC, in its last report on the Italian NPL markets,, calculated that
49% of UTPs at the end of June 2020 were concentrated on the books of the top 10
banks. On the other hand, BeBeez calculated that the top 7 Italian banking groups at
the end of September 2020 had €39.8 billion of UTP on their books out of a total of
€85.3 billion of impaired loans, up from €40.8 billion of UTP at the end of 2019 out
of a total of €92.6 billion of impaired loans (see here BeBeez Insight View of 30
November 2020).
In any case, BeBeez has calculated that at least another EUR 18 billion of
impaired loan transactions already announced are on the way in 2021, but to
these must be added the many single name transactions expected on the UTP front,
starting from the time when the moratorium on loans granted as a measure to
counter the effects of lockdowns as a result of the Covid-19 pandemic and extended
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 2until 31 March next, but also as a result of the application of the new definition of default and in the future for the concentration of
the maturities of loan repayments with public guarantees, will expire.
On the moratorium front, the Bank of Italy (BoI) on 23 December 2020 released the latest figures on the situation as of 11 December 2020
(see press release here), when more than 2.7 million moratorium applications or notices had been received on loans of more than EUR
301 billion. According to the BoI, it is estimated that, in terms of amounts, around 95 per cent of moratorium applications or notices have
already been accepted by the banks and only around 3 per cent have been rejected so far, with the remainder under review. Further
evidence collected by the BoI shows that about 75% of the amounts of moratorium applied for and approved by banks as of March 2020
are still outstanding.
Not to mention what could happen between the end of 2022 and early 2023, since then most of the loans granted with the guarantee of
the SME Guarantee Fund or Sace guarantee will see the expiry of the first two years of grace period and then the companies, still with
an economy that will not have recovered the pre-Covid levels, will have to start to repay heavy installments of capital (see other article of
BeBeez). And here too the numbers are huge. The Ministry of Economic Development and Mediocredito Centrale (MCC) report that a
total of 1,556,191 requests for guarantees were received by the Guarantee Fund in the period from 17 March to 22 December 2020 to
request guarantees for loans to businesses, artisans, the self-employed and professionals, for a total amount of over 124.1 billion euros. To
this figure must also be added that of the 19 billion euro of the 1,254 guaranteed loan operations under the Sace Garanzia Italia tool (see
here the press release).
In the meantime, from the beginning of 2021, the new definition of default provided for by the EU Regulation as amended on the
basis of the EBA Guidelines came into force, which essentially speeds up the transformation of a loan from performing to UTP. The new
rules are in fact the result of a European negotiation compromise, with very different starting positions, and for Italy they introduce
different criteria from those currently used by Italian banks and, in some respects, are more stringent.
As of 1 January 2021, in fact, the new definition of default provided by the EU Regulation no. 575/2013 (Capital
Requirements Rules or CRR) as amended by the EU Delegated Regulation no. 171/2018 of the EU Commission, based on the
EBA Guidelines, came into force. In Italy, the rules provided for by Article 178 of Regulation (EU) No. 575/2013 (CRR) had been
implemented by Bank of Italy Circular 288/2015 and then precisely integrated with an update to the same circular in June 2019,
based on the subsequent amendments made by the EU Delegated Regulation (see here BeBeez article).
Now, in order to better clarify everything, the Bank of Italy on 28 December 2020 sent a communication to banks, financial
intermediaries and parent companies of financial groups and published a FAQ on its website.
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 3The original 2013 CRR prudential framework for financial intermediaries already required that, for purposes of calculating banks'
minimum regulatory capital requirements, debtors be classified as in default if at least one of the following conditions is met: (a) the
debtor is more than 90 days in arrears on a material obligation; or (b) the bank determines that it is unlikely that the debtor will perform
in full without recourse to actions such as enforcement of collateral (unlikeliness to pay).
This definition was then, as mentioned, supplemented by further rules issued at European level: on the one hand, the EBA Guidelines on
the application of the definition of Default (EBA/GL/2016/07) and, on the other hand, the Delegated Regulation (EU) No 171/2018 of the
European Commission of 19 October 2017, which identifies the materiality threshold of credit obligations in arrears.
The Bank of Italy points out that the Delegated Regulation, as implemented in national
law, establishes that a past due credit exposure is to be considered material when
the amount of the arrears exceeds both of the following thresholds: i) €100 for retail
exposures and €500 for non-retail exposures (absolute threshold); and ii) 1% of the total
exposure to a counterparty (relative threshold). Until 31 December 2021, on the other
hand, for financial intermediaries not belonging to banking groups, the relative threshold
is 5% of the total exposure to a counterparty.
Once both thresholds are exceeded, the counting of 90 consecutive days of
overdue amounts begins, beyond which the debtor is classified in a state of default.
The Regulation also establishes the criteria on the basis of which these calculations should
be made; among these, it is foreseen that it is no longer possible to offset past due
amounts against open and unused credit lines (the so-called available
margins).
This deadly mix therefore leads all analysts to expect an increase in UTPs in the coming
months on the banks' books and consequently also an increase in market transactions to
free the banks' balance sheets from those unwanted credits.
Many of these transactions will be securitisation transactions involving large portfolios, with servicers therefore playing an increasingly
important role. According to PwC, as of 30 June 2020 the market leader was AMCO with a total of EUR 10.1 billion of UTP under
management, of which EUR 7.5 billion corporate (net of the EUR 3.35 billion of UTP arrived at the beginning of December from Mps).
Prelios Credit Servicing followed with €9.7 billion, all corporate, and at a distance with €3.6 billion, of which €2.8 billion retail.
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 4Notes: transactions on UTPs are
in green; NPLs means bad loans
Who bought and sold NPEs in Italy in 2020
mln euro
Date Seller Type of NPE Investor Article
GBV
Npl secured and unsecured (89%
dic-20 Intesa Sanpaolo 6.033,00 Yoda spv srl with GACS BeBeez
corporate)
dic-20 Mps 4.798,00 Npl AMCO BeBeez
dic-20 Mps 3.345,00 Utp AMCO BeBeez
84 Bcc, Iccrea Banca, Iccrea BancaImpresa,
nov-20 Banca Sviluppo and Banca Mediocredito del 2.400,00 Npl spv BCC NPLS 2020 srl with GACS BeBeez
Friuli Venezia Giulia
giu-20 Banca Pop Bari 2.000,00 Npl and Utp (60%) AMCO BeBeez
Npl unsecured corporate (5 portfolios
NPL Securitisation Italy SPV srl (J-
apr-20 NPL Securitisation Europe SPV srl (J-Invest) 1.710,00 securitized in 2017 and 2018; BeBeez
Invest)
secondary market deal)
Npl secured retail and corporate
Island Refinancing spv (notes sold in 2019 by
(securitized for the first time with Celio spv srl (notes subscribed by Orado
dic-20 DGAD International to Orado Investments sarl - 1.670,00 BeBeez
Island Finance and Island Finance 2 in Investments sarl -Elliott)
Elliott)
2007)
spv Relais SPV srl with GACS and
dic-20 Unicredit Leasing 1.600,00 Npl real estate leasing BeBeez
Relais LeaseCo srl
lug-20 Grandi Lavori Fincosit 1.300,00 Utp riserve d’appalto Apollo (Aperion) BeBeez
dic-20 UBI Banca 1.223,00 Npl corporate SMEs (61% secured) spv Sirio NPL srl with GACS BeBeez
Npl secured (57%) and unsecured
giu-20 BPER 1.200,00 Spring spv with GACS BeBeez
(43%)
giu-20 Banca Pop Sondrio 999,7 Npl spv Diana with GACS BeBeez
dic-20 15 banks shareholders of Luigi Luzzatti 919,9 Npl spv POP NPLs 2020 srl c with GACS BeBeez
Npl corporate secured (portfolio New
ott-20 Unicredit 692 Illimity BeBeez
York)
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 5mln euro
Date Seller Type of NPE Investor Article
GBV
Npl secured (majority corporate) and
dic-20 nd 680 Guber Banca BeBeez
unsecured
32 banks of Gruppo Cassa Centrale Banca, Banca
dic-20 Sella, CR Cento, Pop Alto Adige, Pop. Lajatico, 679 Npl spv Buonconsiglio 3 srl with GACS BeBeez
Pop. Cortona, Mediocredito Trentino Alto Adige
UTP corporate (parte del project
nov-20 Banco Bpm 641 AMCO BeBeez
Django)
Intesa Sanpaolo, Banca Imi, Unicredit, BPER
Utp corporate (a group of single names,
giu-20 Banca, Crédit Agricole Italia, Crédit Agricole 600 RSCT Fund (Pillarstone Italy) BeBeez
including Pittarosso and Italtel)
FriulAdria
Npl (50%) Utp unsecured retail (50%)
nov-20 Intesa Sanpaolo 553 da cessione quinto dello stipendio Banca Ifis BeBeez
(portfolio Simba)
gen-dic
Banks and consumer credit institutions 500 18 portfolios of Npl unsecured retail Cherry 106 BeBeez
2020
Npl corporate SMEs secured (part of
lug-20 Unicredit 486 Banca Ifis BeBeez
Tokyo portfolio)
Npl corporate SMEs secured (part of
lug-20 Unicredit 477 Illimity BeBeez
Lisbona portfolio)
Utp real estate (first tranche of Progetto
gen-20 AMCO, Mps, UBI Banca e Banco Bpm 450 Back2Bonis fund (Prelios sgr) BeBeez
Cuveé)
Intesa Sanpaolo, UniCredit Leasing e Banco Utp real estatei (second tranche of
dic-20 400 Back2Bonis fund (Prelios sgr) BeBeez
Desio Progetto Cuveé)
feb-20 CreVal 357 Npl unsecured Hoist Finance BeBeez
Npl corporate SMEs secured (part of
lug-20 Unicredit 354 Gaia spv (Guber Banca e Barclays Bank) BeBeez
Tokyo portfolio)
dic-20 Alba Leasing, Banco Bpm, Release 335,4 Npl leasing, (87,7%) real estate Titan spv srl BeBeez
Npl unsecured retail consumer (of
giu-20 Unicredit 335 which 180 mln forward flow; portfolio Banca Ifis BeBeez
Loira)
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 6mln euro
Date Seller Type of NPE Investor Article
GBV
Utp Gruppo Messina, part of Progetto
set-20 Banca Carige 324 AMCO BeBeez
Hydra
Npl secured (49%) and unsecured
dic-20 BPER Banca e Banco di Sardegna 322 Summer spv srl with GACS BeBeez
(51%)
UTP corporate real estate (part of
nov-20 Banco Bpm 301 Credito Fondiario BeBeez
project Django)
ago-20 CreVal 270 Npl unsecured corporate AMCO BeBeez
ago-20 Illimity 266 Npl secured (retail and corporate) Banca Ifis BeBeez
Npl corporate SMEs secured (part of
lug-20 Unicredit 225 Gaia spv (Guber Banca e Barclays Bank) BeBeez
Lisbon portfolio)
Npl unsecured reatil consumer (of
lug-20 società di credito al consumo 206 MB Credit Solutions BeBeez
which 66 mln forward flow)
Sorec srl, Phinance Partners spa e CGM
feb-20 Illimity 182 NPEs retail BeBeez
Italia sgr spa
lug-20 nd 180 NPEs (PA debtors) Credito Fondiario BeBeez
mar-20 CreVal 177 Npl secured AMCO BeBeez
primario operatore attivo nel settore dei crediti
feb-20 170 Npl corporate secured Illimity BeBeez
deteriorati
gen-dic Npl PA debtors, receveirships and trade
nd 160 vari spv (Officine CST) BeBeez
2020 receivables
UTP corporate (second tranche of a 600
nov-20 Unicredit 153 Illimity BeBeez
mln euros portfolio)
York Capital Management Europe (UK)
lug-20 Un intermediario finanziario 150 Npl corporate real estate BeBeez
Advisors
Npl unsecured retail consumer (of
lug-20 banca italiana 129 MB Credit Solutions BeBeez
which 66 mln forward flow)
Npl unsecured retail (part of a former
dic-20 Illimity 129 Spv Lex srl (Sorec, Phinance Partners) BeBeez
MPS’s portfolio)
feb-20 Unicredit 115 Npl corporate secured Illimity BeBeez
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 7mln euro
Date Seller Type of NPE Investor Article
GBV
ago-20 CreVal 102 Npl unsecured corporate MBCredit Solutions BeBeez
nov-20 Banco Bpm 98 UTP corproate (Fingruppo Holding) Illimity BeBeez
dic-20 12 banche 91 UTP corporate (Fenice Holding) spv (Negentropy Capital) BeBeez
dic-20 Intesa Sanpaolo Provis 91 NPEs leasing (portfolio eWok) Intrum Italy BeBeez
set-20 J-Invest spa 89 UTP corporate (18 receveirships) Npl Securitisation Italy spv srl BeBeez
dic-20 Enel Energia 87 Npl unsecured retail utilities spv Heritage (Euro Service) BeBeez
Npl secured by an hotel and a
dic-20 nd 85 York Capital BeBeez
residential real estate complex
UTP corporate (first tranche of a 600
ott-20 Unicredit 81 Illimity BeBeez
mln euros portfolio)
mag-20 Unicredit e Intesa Sanpaolo 80 UTP shipping FINAV (Pillarstone Italy) BeBeez
UTP corporate leasing (part of a 3 bn
giu-20 Banca Pop Valconca 75 nd BeBeez
euros portfolio)
nov-20 Banco Bpm 75 UTP corporate (project Django) vari investitori BeBeez
un primario istituto bancario e una società
apr-20 73 NPEs corporate single name secured Illimity BeBeez
specializzata in gestione NPE
gen-20 Cassa di Risparmio di Volterra 64 Npl single name real estate secured Anacap BeBeez
spv PES srl (Phinance Partners e altri
gen-20 Acea 60,4 Npl unsecured utility BeBeez
investitori)
AMCO, Mps, Bnl, Banco Bpm, BPER, Credit
mar-20 60 UTP corproate (Irplast) Amerina spv (Cheyne Capital) BeBeez
Agricole, Unicredit, Kerma spv, Rienza spv
UTP corporate Microgame, ICQ
Dea CCR II (Dea Capital Alternative
ott-20 Unicredit, UBI Banca, Banca Pop Sondrio 55 Holding, Istituto Neurotraumatologico BeBeez
Funds sgr)
Italiano.e Grupo Calvi Holding
dic-20 Banca Carige 54 Npl corporate secured AMCO BeBeez
gen-20 Istituto per il credito sportivo 47 Npl immobiliari AMCO BeBeez
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 8mln euro
Date Seller Type of NPE Investor Article
GBV
gen-dic
Primario gruppo bancario italiano 47 Npl corporate unsecured (receveirship) Illimity BeBeez
2020
Npl corporate unsecured (receveirship)
dic-20 Primario gruppo bancario italiano 46 (Illimity had previously acquired 47 Illimity BeBeez
mln euros of the same debtor)
Npl unsecured retail (secondary market
dic-20 Banca italiana 40 Leopardo Crediti BeBeez
deal)
Npl unsecured already worked with
dic-20 Banca Ifis 37 Intrum Italy-Revalue BeBeez
reimburse plan
lug-20 nd 36 Npl real estate spv Mizara (Illimity, Davis&Morgan) BeBeez
Npl and UTP corporate, majority
dic-20 nd 31 secured (debtors are 2 companies of the spv (senior notes Illimity) BeBeez
same group
dic-20 Unicredit 31 UTP corporate rela estate secured Illimity BeBeez
giu-20 spv GACS (in gestione a Prelios) 30 Npl tramite Blinks (Prelios Innovation) BeBeez
spv POS srl (Phinance Partners and other
gen-20 Banca Sella 28,3 Npl unsecured retail BeBeez
investors)
giu-20 nd 27 Npl secured through Blink (Prelios Innovation) BeBeez
mar-20 primario istituto finanziario italiano 25 Npl unsecured Axactor Italy BeBeez
spv POS srl (Phinance Partners and other
dic-20 Banca Sella 24 Npl unsecured BeBeez
investors)
Utp corporate secured (Franco Barberis
dic-20 Banco Bpm 21 Illimity BeBeez
Impresa Costruzioni)
Iccrea BancaImpresa, Banca Prealpi Sanbiagio e Catullo spv srl (Zetland Capital) and a
apr-20 18 Npl and Utp secured BeBeez
Cassa Centrale Raiffeisen dell’Alto Adige Reoco
giu-20 nd 14 Utp secured by solar plants spv jv Illimity and Vei Green II BeBeez
feb-20 Bcc Credito Padano (Gruppo Iccrea) 12,8 Npl secured (majority) and unsecured Balbec Capital BeBeez
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 9mln euro
Date Seller Type of NPE Investor Article
GBV
feb-20 Bcc Credito Padano (Gruppo Iccrea) 12,8 Npl secured (majority) and unsecured Balbec Capital BeBeez
ott-20 Bcc Agrobresciano 10 Npl secured MyCredit e Balbec Capital BeBeez
spv POS srl (Phinance Partners and other
gen-20 BCC Credito al Consumo 8,2 Npl unsecured retail consumer BeBeez
investors)
giu-20 banca gruppo Cassa Centrale Banca 8 Npl single name Through Blink (Prelios Innovation) BeBeez
lug-20 nd 6 Npl real estate Borgosesia BeBeez
gen-20 Cassa di Risparmio di Fermo nd Npl real estate secured Anacap BeBeez
Npl secured (2 porfolios; secondary
gen-20 nd nd Anacap BeBeez
market deal)
Totale 42.064,7
Totale
9.849,00
UTP
Source: BeBeez
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 10NPEs transactions expected in Italy in 2021
mln euro
Seller Type of impaired credit Potential buyer Article
gross
Unicredit 6.650,00 Utp (part of a 13.3bn portfolio, the rest to be managed) Dea Capital, Clessidra sgr, doValue, Intrum BeBeez
Rev 1.500,00 Npl securitisation with Gacs BeBeez
Intesa Sanpaolo 6.500,00 impaired loans nd BeBeez
Unicredit 1.000,00 Utp small ticket (Project Dawn) nd BeBeez
Medium-large banks 650,00 Real estate Utp (rest of the Cuveé Project) AMCO and Prelios (balance to reach 1.5 bn target) BeBeez
Utp (under framework agreement also for management of
Credit Agricole Italy 500-600 another billion) nd BeBeez
Secured and unsecured NPLs (part of the Mercury
Bnl Bnp Paribas 538,00 nd BeBeez
portfolio)
Intesa Sanpaolo 250,00 Utp (Levante Project) Bain Capital Credit, Apollo Management, Bayview BeBeez
Banco Bpm 200,00 Npl leasing (part of Project Titan multi-originator) spv BeBeez
Banca Carige 100,00 Npl leasing, part of Hydra project AMCO BeBeez
nd 50,00 NPL and Utp Frontis Npl and IBL Banca BeBeez
a local bank 33,00 NPL and Utp AMCO BeBeez
Total 18.021,00
Source: BeBeez
January 2021 - EdiBeez srl - operational headquarters Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan 11You can also read
