The BFA-Bankia Group signs agreement for the sale of two loan portfolios for 895 million euros

  • The sale reduces the Group’s non-performing loans by 482.2 million euros
  • The impact on the Group’s liquidity and capital is positive, on account of the high level of provisions already taken against the loans

MADRID, 19-9-2014 — /EuropaWire/ — The BFA-Bankia Group has entered into an agreement for the sale of two loan portfolios for 895 million euros. The provision coverage of both portfolios was high, so the impact on the Bank’s liquidity and capital is positive. The disposal further reduces the Group’s stock of non-performing loans by 482.2 million euros.

The portfolio was split into two blocks. The first consists of consumer loans to retail customers (loans, credit lines, and discounted bills and credit cards), in the amount of 318 million euros.

The second block comes from financing to the SME segment, totalling 577 million euros.

These two sub-portfolios, comprising around 56,000 transactions, are made up of unsecured assets. Bankia was advised in this deal by KPMG.

In order to maximise the price obtained for the portfolios, the sale was carried out via competitive bidding among institutional investors and top-ranking financial institutions.

The Bank thus continues to make progress in the implementation of its Strategic Plan for the 2012-2015 period, which includes a commitment to dispose of all non-strategic assets.

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