Eurobank has entered into an agreement with Intrum, to sell a non-performing loan portfolio of total unpaid principal c. €1.5 bln of which c. €620m on balance sheet. The portfolioconsists of unsecured consumer loans. The servicing of the portfolio will remain with Financial Planning Services (FPS), which is the 100% owned by Eurobank licensed NPL servicer. Intrumhas the flexibility to find alternative servicing capacity in the future. The investment will befinanced by Intrum’s available cash and credit facilities.
The transaction is part of Eurobank’s 2017 NPE plan reduction and will close within Q4 2017.The consideration is c. 3% in terms of total unpaid principal and will be P&L and capitalneutral.
“Eurobank committed towards its regulators and shareholders to derisk its balance sheet byactively managing and reducing its NPL book, is proceeding with a significant sale of consumer unsecured NPLs to Intrum. We are happy to conclude this transaction with the
largest European Credit Management Services provider who is well known and reputable for
its servicing practices”, says Fokion Karavias, CEO of Eurobank.