UniCredit Said to Seek Buyers for $838 Million of Bad Loans

  • Sale said to involve portfolio of unsecured corporate loans
  • UniCredit sold 10 billion euros in bad debt in last 3 years

UniCredit SpA is seeking to sell non-performing loans with a face value of about 750 million euros ($838 million) as Italy’s biggest bank tries to shore up capital, said people with the knowledge of the matter.

The package includes loans to small- and medium-sized companies, said the people, who asked not to be identified because the transaction is not yet public. The bank plans to select bidders and give access to loan data by June and close the transaction by the end of the third quarter, one of the people said.

European regulators are stepping up pressure on Italian lenders to clean up their balance sheets, strengthen capital buffers and cut an estimated 360 billion euros in non-performing. UniCredit is seeking a new chief executive officer after Federico Ghizzoni agreed to step down amid pressure from investors over the bank’s failure to shore up capital and increase profitability.

UniCredit, one of Europe’s most poorly capitalized banks, has sold more than 10 billion euros of bad loans in the past three years and is targeting annual disposals of at least 2 billion euros. The lender sold about 420 million euros of non-performing Italian consumer loans to AnaCap Financial Partners LLP in April.

A spokesmen for UniCredit declined to comment.

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