Patria Bank sales NPL portfolio with a total value of 502 million RON

Deloitte Romania and Reff & Associates advised Patria Bank in the sale of a portfolio of non-performing loan (NPL) receivables with a total nominal value of 502 million RON to companies part of KRUK Group.

The portfolio has been segmented in two tranches and each of them has been sold following a dedicated competitive process for selecting the buyer. The first tranche, with a face value of approximately 245 million RON, was sold in October 2018 and comprised of unsecured consumer loans. The portfolio with a face value of approximately 257 million RON sold within the second tranche, which was announced in January 2019, comprises secured loans granted to companies and consumers.

In both stages of the project, Deloitte Romania’s financial advisory team has provided comprehensive assistance in structuring the transaction, preparing the data bases, planning and coordinating the sale processes. The team was headed by Radu Dumitrescu, Transactions Support Services Partner, while Bogdan Mazilu, Assistant Director, coordinated the financial assistance services with the support of consultants Crina Ciudin and Radu Constantin.

“Although the NPL transactions market has been significantly impacted by the changes in the fiscal code and by the potential legislative changes which affect both the banking and the debt collection companies, this project fuels hope that we will continue to see such engagements which help banks improve their financial performance. These transactions were among the most important ones initiated in Romania in 2018 in this niche market, considering both their complexity and their share in the total value of the market,” said Radu Dumitrescu, Transactions Support Services Partner, Deloitte Romania.