Sale of Eurobank’s non-performing loan portfolio
We have acted as Eurobank’s legal advisors in relation to the agreement for the sale of a non-performing loan portfolio of total unpaid principal c. €1.5 bln by Eurobank to Intrum, being the first sale of an NPL portfolio by a Greek systemic Bank.
The portfolio consists of unsecured consumer loans. The servicing of the portfolio will remain with Financial Planning Services (FPS), which is the 100% owned by Eurobank licensed NPL servicer. Intrum has the flexibility to find alternative servicing capacity in the future. The investment will be financed by Intrum’s available cash and credit facilities. The transaction is part of Eurobank’s 2017 NPE plan reduction and will close within Q4 2017. The consideration is c. 3% in terms of total unpaid principal and will be P&L and capital neutral.