Novobanco sells NPL portfolio with a 70% discount
The Portuguese bank announced the sale of the Orion project to a consortium of funds managed by British company West Invest and Luxembourg-based LX Partners (LXP).
Novobanco on Thursday announced the sale of the Orion project, a portfolio of non-performing loans and related exposures, to a consortium of funds managed by British company West Invest and Luxembourg-based LX Partners (LXP).
In a statement sent to the Securities and Exchange Commission (CMVM), the financial institution led by António Ramalho said that this portfolio, which in September 2021 had an outstanding balance of €231.3 million, was sold for a total amount of €64.7 million. That is, with a 70% discount in relation to the gross value.
The Portuguese bank stresses that the completion of this transaction “is expected to have a marginal positive impact on Novobanco’s capital position and in 2021 income statement.”
“Together these agreements represent a €168.1 million reduction of non-performing loans (“NPL”) and are an important milestone for Novobanco, allowing the Bank to pursue its strategy of converging towards EU average,” stresses the bank controlled by the American Lone Star, which this Thursday received 112 million from the Resolution Fund.