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Monte dei Paschi completes sale of NPL recovery platform

Credit risk information provider Cerved Group SpA and asset manager Quaestio Holding SA completed the acquisition, through special-purpose entity Quaestio Cerved Credit Management SpA, of Banca Monte dei Paschi di Siena SpA's nonperforming loan recovery platform for a total cash consideration of €52.6 million.

The platform will service at least 80% of new NPL inflows that Monte dei Paschi will generate over the next 10 years, as well as other NPLs arising from the securitization of Monte dei Paschi assets and other securitization transactions promoted by Quaestio. The new NPL inflows that will be serviced by the platform have an initial value of approximately €4.5 billion, while the other NPLs stood at about €17.6 billion as of May 14.

Monte dei Paschi has the potential to receive a total earn-out of up to €33.8 million, payable in two tranches, subject to the platform achieving certain targets in 2020 and 2025.