Banca Ifis develops the first securitization in Italy of
Banca Ifis develops the first securitization in Italy of doubtful debts assisted by decrees of sale
- The Group is acting as a pioneer: the pioneering finance operation is new for this type of non-performing exposure
- Moody’s and Scope have assigned senior bonds a rating of A2 and A-, confirming the quality of NPL’s portfolio and the ability of Banca Ifis to serve
Milan, March 22, 2021 – Through the subsidiary Ifis Npl Investing, Banca Ifis achieves its funding objective the very first securitization in Italy of a non-performing portfolio, mainly made up of unsecured loans assisted by sale orders. The transaction is an innovative solution in the Italian bad debt market where the recovery process for this type of non-performing exposures contemplates the debt recovery procedure by way of enforcement (seizure of a fifth of the salary / pension) is already at an advanced stage of recovery.
The transaction will allow Ifis Npl Investing to get funding for a amount up to 350 million euros, without deconsolidating the underlying loans which will remain within the Banca Ifis Group. The loan portfolios included in the transaction (a portfolio of secured loans and a portfolio of unsecured loans assisted by transfer orders) held by Ifis Npl Investing, were transferred to a newly created SPV named IFIS NPL 2021-1 SPV Srl , which will issue senior, mezzanine and junior tickets.
The mezzanine and junior notes have been fully subscribed by Ifis Npl Investing and will not be sold. The two classes of senior notes, net of 5% which will be retained by the originator, will be admitted to trading on the Borsa Italiana ExtraMOT debt market, and will be refinanced on the institutional investor market.
The transaction will allow Ifis Npl Investing to finance itself and assert itself in the Italian market for Npl maintenance its ability to service non-performing loans via the Ifis Npl Servicing subsidiary, also for the benefit of third parties.
The rating agencies Moody’s and Scope respectively assigned, for the first time in Italy to this asset class, the senior A2 and A- ratings and the mezzanine rating a B2 and B + rating, underline the strength of the product (ie the order of allocation) and the future underline the service capacity of Banca Ifis.
The transaction involved JP Morgan and Deutsche Bank as arrangers, the law firms BonelliErede (on behalf of the Banca Ifis group) and Orrick Herrington & Sutcliffe (on behalf of the arrangers) and Banca Finint as Corporate Servicer.
Martino Da Río
Cristina Fossati, Luisella Murtas
- 20210322_Banca Ifis develops the first securitization in Italy of doubtful debts assisted by decrees of sale_FR.docx