Alantra advises Abanca on the sale of a € 25M Portfolio of Sub-performing and Re-performing Unsecured Loans to an Investment Fund

Nov 2022

Funding and Structured Finance

Madrid – Alantra, a leading global investment bank and asset management firm, has advised ABANCA Corporación Bancaria, S.A. (“Abanca”), the seventh largest Spanish bank by volume of assets, on the sale of a Sub-performing and Re-performing Unsecured Loan Portfolio (the “Portfolio”) with a total principal balance of c. € 25M to a European Investment Fund. The transaction took place in Q3 2022.

The Portfolio is composed of a mix of Individuals (48%) and SMEs (52%). The sale structure used was a unique and innovative solution where Abanca maintains the servicing of performing loans, along with other mechanisms to avoid any reputational risks with the borrowers.

This transaction represents a unique process in the Spanish Unsecured Reperforming space (“RPL”), and a key milestone for Abanca in particular and for the Spanish RPL market in general. Alantra consolidates its position in a wide variety of Portfolio ticket ranges having also collaborated with Abanca in the sale of a parallel process named Project Ulla (Reperforming Mortgage Portfolio of c. € 95M) acquired by a different investor.

Joel Grau, Managing Partner & CEO of Alantra Credit Portfolio Advisory, commented: “This transaction is a key milestone for Alantra’s track record in the RPL space that adds up to the recent closing of Project Wolf [also RPL unsecured], but also for the Spanish Market with an uncommon asset class and financial structure that we are already introducing to other financial institutions.”

The team advising ABANCA was comprised of Joel Grau Blasi, Félix Rivera Fernández, José Molina Machuca and Juan Lucas De Benito.