Italian financial specialist, UniCredit has agreed to sell a portfolio of non-performing loans (NPLs) to Italian merchant bank Mediobanca and New York-based private arm of Cerberus Capital Management.

The portfolio of secured and unsecured credits has a gross value of around €715m ($852.7m) and is part of a major drive by UniCredit to clear non-performing loans from its books.

Mediobanca unit MBCredit Solutions has purchased the unsecured segment of the portfolio, with a gross book value of €450m, while Cerberus has bought the secured segment, with a gross book value of €265m. UniCredit confirmed that the sale formed part of a strategy to lower its exposure to non-performing loans, saying that the transaction would be reflected in its fourth-quarter results.