Värde leads €1.4bn Italian NPL deal

The package of Northern-Italian loans was acquired following a digital due diligence process.

Alternative credit investor Värde Partners has acquired a €1.4 billion package of non-performing loans (NPLs) alongside Barclays and Guber Banca.

The loans were originated by a group of 53 cooperative, rural and popolari banks in Italy.

The loan portfolio, which has a gross book value of €1.4 billion, consists of more than 9,000 positions with 39 percent of the portfolio being secured. Most of the loans were originated in northeast and northwest Italy.

A securitisation vehicle called Futura SPV was used to acquire the portfolio which has issued single-tranche notes, most of which are underwritten by a Värde-owned company, financed by Barclays Bank, and a minority held by Guber Banca.

Centrale Credit & Real Estate Solutions acted as advisor and coordinated the sales process. Guber Banca will act as servicer and sub-servicer of the portfolio.

Freshfields Brauckhaus Deringer acted as legal advisor for Värde, Barclays and Guber Banca.

Francisco Milone, partner and head of European real estate at Värde, said: “We initially invested in Guber in 2017 knowing they would play a big role in our longer-term strategy to invest in NPLs in Italy. Värde has deep expertise investing in stressed and distressed loans and with dedicated people and resources on the ground, we remain committed to growing our presence in Italy.”

The deal was highly reliant on digital due diligence technology, which Guber Banca said is essential to performing rapid due diligence on NPL portfolios in a competitive market with short lead times.