CREDITO FONDIARIO AND ELLIOTT SIGN A LONG-TERM PARTNERSHIP WITH BANCO BPM IN THE NPL SECTOR

Credito Fondiario and Elliott signed with Banco BPM a binding agreement for the establishment of a long-term partnership in the NPL sector. This partnership is structured via two transactions: the subscription by Elliott (through a controlled company) of the junior and mezzanine tranches of a securitisation of non performing loans (NPL) of Banco BPM for a nominal amount between Euro 7 and 7.8 billion, with Credito Fondiario acting as master servicer and corporate servicer of the SPV; and a partnership between Credito Fondiario and Banco BPM, with the establishment of an NPL servicing platform and the signing of a 10-year NPL servicing agreement.

Credito Fondiario, in the context of this deal, will acquire a 70% stake of Banco BPM NPL platform, with Banco BPM retaining 30%. This company will act as servicer of the portfolio acquired by Elliott, the residual stock owned by Banco BPM and 80% of Banco BPM new flows into NPLs over the next 10 years. This transaction further strengthens Credito Fondiario’s position as Italian market leader in the credit management sector. - PRESS RELEASE