CREDITO FONDIARIO REACHED AN AGREEMENT WITH CARIGE IN RELATION TO THE ACQUISITION OF A PORTFOLIO OF NPLS WITH A GROSS BOOK VALUE OF ~€1.2 BN AND ITS NPL SERVICING PLATFORM

Credito Fondiario reached a binding agreement with Carige in relation to the acquisition of a portfolio of NPLs, mostly secured, with a GBV of 1.2 billion of euro and a purchase price of 266 million of euro (equal to ~22% of the GBV).

At the same time, Credito Fondiario signed with Carige a preliminary agreement in relation to the acquisition, for a purchase price of 31 million of euro, of its NPL servicing platform and a long-term servicing contract, with completion envisaged – subject to regulatory authorisations – in the first half of 2018.

In order to support these transactions and the future activities envisaged by the business plan, Credito Fondiario has implemented a significant capital strengthening for a total of 105 million of euro, inclusive of the second tranche of the capital increase approved in March 2016, increasing the net equity of the bank to ~190 million of euro.