APS Holdings, one of Europe’s largest debt servicing companies, is set to buy the whole portfolio of National Bank of Greece’s Cypriot non-performing loans, according to informed sources.
When announcing the results of the last six months, NBG’s management has made clear that more NPLs portfolios are up for sale – including one with Cypriot NPLs whose estimated nominal value is €400 million.
The apparent deal with APS is expected to be finalised within the last three months of the year, the same informed sources said.
Specifically, APS will acquire NBG’s red loans in Cyprus that have been transferred, temporarily, to a separate subsidiary company registered in Nicosia. It is called CAC Coral Limited.
The Bank of Cyprus has recently sold a portfolio of NPL’s nominally worth €245 million to APS which is the same company that took over Hellenic Bank’s toxic loans in July 2017.
At the same time, the NBG Group plans to sell a shipping loan portfolio of €300 million in the third quarter of 2019 to a non-disclosed buyer. And in in the fourth quarter of the year, the Group is set to get rid of a red loan portfolio in Romania with a total value of €200 million which also includes real estate guarantees.
However, the NBG Group has not announced anything on a reported ongoing sale procedure of the good bank in Cyprus. Even though the six-month results do mention that “CET1 Indicators for Q2 2019…include the benefit of agreed investments by our subsidiaries in Romania, Egypt and Cyprus.”
This may be a strong indication that the NBG Group is closer than ever to reaching an agreement with Astrobank, with which it has been negotiating for months, for the sale of its subsidiary in Cyprus.