Norwegian lender Monobank ASA agreed to sell unsecured nonperforming loan claims to Nordic debt management firm Axactor, formerly Nickel Mountain Group AB.
Axactor will acquire fresh unsecured lending claims on a monthly basis under the forward flow agreement. Axactor estimated its annual capital expenditure from the deal at between €15 million and €20 million.
Monobank expects to secure an accurate basis for loan pricing and a monthly confirmation of provision levels through the agreement. It also expects the deal to strengthen its balance sheet while reducing overall risk, and allow it to pursue new growth opportunities.
Axactor said it will finance the deal through available cash and existing credit facilities.
The company the same day named Johnny Tsolis group CFO. He had been the company's executive vice president for strategy and projects and replaces Geir Johansen, who will leave the group.