AQUI - Securitization of bad loans

BPER Banca would like to announce that it has concluded its securitisation of the "AQUI" bad loan portfolio as part of a broader programme of derisking and improvement of asset quality of the BPER Group ("NPE Strategy 2018-2020").

In particular, it has sold a portfolio of bad loans with a gross book value of € 1.9 million (against a gross amount due of € 2.1 billion, consisting of secured loans for 59.5% and unsecured loans for 40.5%) with effect on the income statement from 1 January 2018. The portfolio was sold to "AQUI SPV Srl", a special purpose securitisation vehicle set up under Law 130/99, issuing in exchange three different classes of securities for a total of € 618.4 million:

• a senior tranche, € 544.7 million, corresponding to 28.7% of the gross book value, to which investment grade ratings have been assigned: Baa3 by Moody’s and BBB- by Scope Ratings;
• a mezzanine tranche of € 62.9 million;

• a junior tranche of € 10.8 million.