National Bank puts NPL portfolio of 5.2 bln euros up for sale

National Bank puts NPL portfolio of 5.2 bln euros up for sale

National Bank of Greece will officially launch the process for a sale of bad loans with a total value of 5.2 billion euros on February 5.

This is the first portfolio the bank is putting up for sale, following the example set by Eurobank and Alpha.

According to the timetable set by NBG management, the virtual data rooms for the “Earth” portfolio to be offered for sale will open next month, with potential investors asked to table their binding offers by March 5. Morgan Stanley will be running the procedure.

Next week Alpha Bank is also expecting binding bids for the “Venus” loan portfolio, worth an original sum of 2.5 billion euros. At the end of 2017 Eurobank sold an NPL portfolio of 1.5 billion euros.

Sources say Piraeus Bank will also follow, planning the transfer of two portfolios worth 1.5 billion euros each: They are the “Arktos” portfolio, which includes unsecured loans, and the “Amoeba” set of NPLs, which contains secured corporate loans.

The NBG portfolio to go up for sale concerns unsecured loans with a nominal value of 1.9 billion euros in total (not including interest and delay penalties). They are 304,000 loans that have been delayed by an average of seven years. The average debt per borrower amounts to about 10,000 euros.

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