Novo Banco SA and Arrabida - Fundo Especial De Investimento Imobiliario Fechado entered into a sale and purchase agreement with Burlington Loan Management DAC, a company affiliated with and advised by Davidson Kempner European Partners LLP, for the sale of a nonperforming loan portfolio and related exposures for €191 million.
The portfolio has an outstanding balance of roughly €2.73 billion and a gross book value of €1.71 billion, subject to ordinary perimeter adjustments at closing.
Novo Banco said the transaction, which is part of its strategy to dispose of nonperforming assets, is expected to have a direct impact of €106 million on its 2019 income statement.
The deal is expected to complete in the coming months, subject to the completion of all relevant conditions.
