May 31, 2018 / 3:34 PM / in 8 months

Banco BPM says to transfer 5.1 billion euros in bad loans to securitisation vehicle

MILAN (Reuters) - Italy’s third-largest bank Banco BPM (BAMI.MI) is set to move bad loans worth a nominal 5.1 billion euros ($6 billion) into a securitisation vehicle and expects to transfer them at a price close to their book value.

Banco BPM said in a statement on Thursday it planned to keep the least risky tranche of notes to be issued by the vehicle after tapping a state guarantee scheme known as GACS.

The bank will look instead to sell on to investors the junior and mezzanine tranches.

Banco BPM, which has plans to sell a further 3.5 billion euros in bad debts, said it had started looking for advisers that could help it accelerate its bad loan reduction plan.

Reporting by Valentina Za, editing by Giulia Segreti

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