Alantra advises Abanca on the placement of a €258m portfolio of performing and reperforming mortgages to CarVal Investors

Jun 2021

Sell-side advisory - Performing and Reperforming Mortgages

Value €258 million

Madrid – Alantra, the global investment banking and asset management specialist, has advised Abanca, a leading financial institution in Spain, on the placement of the credit rights of a €258Mn of mortgage transfer notes backed by performing, reperforming and non-performing mortgages to US Fund CarVal Investors (Project Eume).

Project Eume’s portfolio is composed by primarily loans backed by properties in Spain. The transaction is included in the strategic plan of Abanca to reduce their NPL exposure. After its completion, Abanca has been able not only to improve the delinquency rate to 2% but also become the market leader with a healthy book well below Spanish average of 3.9%.

Despite the unique socio-economic challenges caused by Covid-19, Project Eume had great acceptance in the market, attracting a large number of investors. The private placement of the notes was executed before year end thanks to the structure implemented, where Abanca will continue managing the relationship with the clients avoiding any reputational risk, but the payments will go to the investor account. As a result, Abanca achieved the derecognition of these loans, with the consequent release of risk weighted assets and future savings related to provisions/capital.

In November 2020, Alantra continued its expansion in the Structured Finance space by appointing Francesco Dissera (former head of Continental Europe Securitisation business at Banco Santander) to lead the securitisation business across Europe. The team is based in London and comprises more than 15 senior professionals dedicated to advising on securitisation and secured financing transactions across Europe – where Alantra can rely on local hubs with a deep market knowledge.

Joel Grau, Managing Partner & CEO of Alantra Credit Portfolio Advisory commented: “We are pleased to expand our securitisation business in Spain and support Abanca with its reperforming loans strategy. We believe this is an important transaction not only for our client, but also for Alantra, as it demonstrates our enhanced credentials and capabilities as a trusted and independent advisor for complex NPL, RPL, PL portfolio transactions.”