APS acquires €1.3bn NPL portfolios in Romania

By bne IntelliNews July 28, 2016

Prague-based debt recovery firm APS Holding announced on July 28 it has completed the acquisition of two portfolios of non-performing loans (NPLs) with a nominal value of €1.33bn in Romania.

The NPL ratio in Romania’s banking system dropped by a 0.7pp m/m to 12.4% at the end of May, the central bank announced earlier this month. The ratio plunged by 7pp on an annual basis. Romanian banks might sell up to €3bn of NPLs this year, according to an estimate from consultancy firm KPMG. NPL deals hit €2.26bn last year, the consultancy has claimed.

The first portfolio acquired by APS includes secured and unsecured corporate and SME loans, with the secured positions held against mostly residential, commercial and industrial property. The nominal value of the portfolio exceeds €1.07mn and was acquired from a major international bank active on the Romanian market, APS said without naming the lender.

Romanian media recently reported that BCR, part of Erste Group, completed the sale of a €1.1bn NPL bundle to a consortium formed by Deutsche Bank, International Financial Corporation (IFC) and APS. The discount was around 90%, economica.net claimed at that time. The bank’s NPL ratio decreased by some 5pp following the deal.

APS acquired the second portfolio of NPLs with a nominal value exceeding €261mn from Intesa Sanpaolo Bank Romania. The portfolio includes secured and unsecured corporate loans and secured and unsecured retail loans, with the secured positions held against mostly residential, commercial and industrial property.

The acquisition was made via APS Delta, a securitisation vehicle representing APS Holding, supported by other institutional investors such as AnaCap Financial Partners.

Founded in 2004 by Slovak investment firm Slavia Capital, APS is a leading company in investment, management, and recovery of loan portfolios and real estate within Central and Southeast Europe. It provides services in 10 European countries: Bulgaria, Croatia, Cyprus the Czech Republic, Montenegro, Poland, Romania, Greece, Serbia and Slovakia. APS manages assets totaling more than €4.5bn.

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