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BRIEF-Italy's Creval closes sale of 1.4 bln euro bad loan portfolio
July 14, 2017 / 5:24 AM / 4 months ago

BRIEF-Italy's Creval closes sale of 1.4 bln euro bad loan portfolio

Italy’s Credito Valtellinese (CREVAL) says:

* has closed sale of bad loan portfolio worth 1.4 billion euros ($1.60 billion) through securitisation and use of state-guarantee on senior tranches

* transaction results in overall negative impact of approximately 120 basis points on CET1 ratio

* sale in line with objectives set out by lender’s 2017-18 business plan

* made through transfer to a special purpose vehicle

* senior tranche worth 464 million euros

* deconsolidation of portfolio determines improvement of the gross NPL ratio to an estimated 21.2 percent from 27.2 percent at March 31, 2017

* General Manager Mauro Salvetti says transaction is “key step in the de-risking of the bank’s balance sheet... improved asset quality level of the group by bringing the NPL ratio back to a level that is similar to Creval’s direct peers”. Source text for Eikon: Further company coverage: ($1 = 0.8769 euros) (Reporting by Milan newsroom)

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