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Banca Ifis and Illimity: first deal for the sale of a NPL portfolio

Inside information

Milan, 7 August 2020Banca Ifis and illimity Bank announce they have finalized a deal involving non-performing loans (“NPL”) for a total Gross Book Value of approximately 266 million euro and related to around 4,000 debtors. Specifically, the portfolio sold by illimity to Ifis NPL, a subsidiary of Banca Ifis Group, consists of unsecured loans, related to retail and corporate granular positions acquired by illimity, during 2019, as part of investment transactions in large portfolios on the primary market.

Katia Mariotti, Chief NPL Officer of Banca Ifis, commented:

Through this first agreement, Banca Ifis and Illimity enter into a new collaboration aimed at providing the secondary credit market with greater efficiency and liquidity. With this deal, which involves a portfolio recently acquired by illimity from relevant originators on the primary market, the different skills and expertise are exploited to the fullest.

Even in this environment, the secondary market remains a dynamic arena capable of offering important selected investment and profitability opportunities: Banca Ifis then confirms itself as a reference counterparty in the purchase of distressed credit, thanks to its great attention to asset selection and its ability to extract value from NPL portfolios in the different stages of the credit cycle”.

Andrea Clamer, Head of Distressed Credit Investment and Servicing Division of illimity, commented:

The transaction was carried out identifying, among the distressed credit acquired so far by illimity, a few non-core positions according to the current business model. We will continue to generate value also through disposal opportunities of this kind and by creating synergies with players like Banca Ifis, specialized in asset classes that are complementary to illimity’s core business. The deal announced today represents the second of its kind and it is an important milestone. We will continue to work in this direction by seizing all opportunities emerging in the market.

The disposal of these credits is consistent with the Bank’s business plan, which focuses on the large corporate segment. With this deal, illimity confirms its position as one of the most dynamic operators in the distressed credit market, with a portfolio of approximately 5.8 billion euro in gross book value as at 30 June 2020“.