Intrum has entered into an agreement to acquire a non-performing loan portfolio from Eurobank, one of the four Greek banks considered as critical for the stability of the Greek economy, for a total investment of approximately SEK 0.4 bn. The portfolio consists of well diversified unsecured consumer loans. Servicing of the portfolio will be outsourced to, FPS, a specialized company belonging to the seller but Intrum has the flexibility to find alternative servicing capacity in the future.
Mikael Ericson, President & CEO of Intrum said “This investment is strategically important for Intrum, positioning us as a strong partner for Greek banks which have significant non-performing loans to address. We believe that there will be significant opportunities in the Greek economy and in the Greek credit management industry to continue the growth of Intrum’s market leading presence in Europe”,
“Eurobank’s commitment towards its regulators and shareholders to derisk its balance sheet by actively managing and reducing its NPL book is proceeding with a significant sale of consumer unsecured NPLs to Intrum. We are happy to conclude this transaction with the largest European Credit Management Services provider who is well known and reputable for its servicing practices”, says Fokion Karavias, CEO of Eurobank.
The investment will be financed by Intrum’s available cash and credit facilities.