The board of Italy's Banco BPM SpA has approved the sale of unlikely-to-pay, or UTP, loans made to mainly corporate clients for more than €1 billion.
The approval comes after Credito Fondiario SpA and state-owned bad-loan manager AMCO - Asset Management Co. SpA placed bids for the soured debt in October.
The sale and certain other transactions likely to complete by 2020-end will cut Banco BPM's nonperforming exposure ratio from 8.6% to around 7.7%. The transactions are worth up to €1.2 billion.
Banca Akros and Deloitte acted as financial advisers to Banco BPM on the deal, while Studio Chiomenti was the bank's legal adviser.