Banca Ifis, at the start of the first securitization in Italy of assisted NPL loans

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Sebastien Egon Fürstenberg, Presidente Banca Ifis

Banca Ifis, the first securitization in Italy of NPL loans backed by assignment orders is underway

Banca Ifis, through the subsidiary Ifis Npl Investing, carries out the first securitization in Italy of a non-performing portfolio consisting mostly of “unsecured” loans for financing purposes assisted by assignment orders. The operation is a novelty for this type of impaired loans where the recovery process of the same, through forced execution (attachment of one fifth of the salary), is at an advanced stage. The transaction will allow Ifis Npl Investing to raise up to 350 million euros of liquidity on the institutional market without deconsolidating the underlying receivables which will remain the property of the Group Banca Ifis.

In particular, the loan portfolios involved in the transaction (a secured loan portfolio and a portfoliounsecured” assisted by assignment orders) owned by the subsidiary Ifis Npl Investing, were transferred to a newly established vehicle called IFIS NPL 2021-1 SPV Srl which issued senior, mezzanine and junior notes. The mezzanine note and the junior note have been fully subscribed by Ifis Npl Investing and will not be sold.

The two classes of senior notes, net of the 5% that will be retained with the originator, will be admitted to trading on the ExtraMOT debt market of Borsa Italiana and will be refinanced on the institutional investor market. The operation, according to the press release Banca Ifis, will allow Ifis Npl Investing to finance itself and to confirm on the Italian servicer market the management and recovery capabilities of the non-performing loans of the subsidiary Ifis Npl Servicing, also at the service of third parties. The rating agencies Moody’s and Scope respectively assigned, for the first time in Italy for this asset class, the ratings of A2 and A- to the senior notes and the ratings B2 and B + to the mezzanine note, highlighting the quality of the credits backed by assigning and emphasizing the management skills of Banca Ifis.

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