trending Market Intelligence /marketintelligence/en/news-insights/trending/-9A3AXrMAw1urWwSvrhKQA2 content esgSubNav
In This List

UniCredit offloads €6B worth of soured debt to securitization vehicle Prisma

Blog

Insight Weekly: Bank boards lag on gender parity; future of office in doubt; US LNG exports leap

Blog

Insight Weekly: Job growth faces hurdles; shale firms sit on cash pile; Africa's lithium future

Podcast

Street Talk | Episode 99 - Higher rates punish bond portfolios, weigh on bank M&A

Blog

Insight Weekly: Loan growth picks up; US-China PE deals fall; France faces winter energy crunch


UniCredit offloads €6B worth of soured debt to securitization vehicle Prisma

UniCredit SpA sold a €6.06 billion portfolio of nonperforming loans to securitization vehicle Prisma, according to a release from Scope Ratings.

The rating agency said the loans were transferred to Prisma on Oct. 11. The portfolio mainly consists of home mortgages: 64% of the portfolio is made up of secured loans and the remaining 36% of unsecured loans.

Prisma structured the transaction in three classes of notes — senior class A, mezzanine class B and junior class J — with fully sequential principal amortization. The class A and B notes carry a floating-rate coupon based on the euro interbank offered rate plus a margin of 1.5% for the former and 9.0% for the latter. Meanwhile, the class J notes' principal and interest are subordinated to the repayment of the class A and B notes.

Scope assigned a final rating of BBB+ to the class A notes totaling €1.21 billion and gave the class B notes, totaling €80 million, a final rating of B-. The class J notes, totaling €30 million, were not rated by the agency.

The notes are structured under the requirements of the Italian government's guarantee on securitization of bank nonperforming loans, or GACS, which banks can tap to wrap senior notes in bad loan securitization deals.

The move is the latest in UniCredit's ramped up efforts to reduce the amount of bad debt it holds. Since June, the Italian lender has off-loaded multiple portfolios of soured debt to the tune of roughly €2.3 billion.