Eurobank Ergasias SA agreed to sell a nonperforming loan portfolio to a consortium of Norway's B2Holding ASA and U.S.-based Waterfall Asset Management LLC
The portfolio has a total unpaid principal about €1.1 billion, of which some €1 billion sits on the balance sheet, and €2 billion of total face value from ancillary charges. The portfolio comprises unsecured consumer loans. The deal, which will close in the fourth quarter, aligns with the bank's 2018 plan of reducing nonperforming loans.
Eurobank unit Financial Planning Services will continue servicing the portfolio in cooperation with B2Kapital SA.
The consideration is approximately 6% in respect of total unpaid principal. The transaction will have no impact on capital or profit and loss statement. BlackRock and Papadimitriou served as advisers to Eurobank on the deal.