European credit management specialist Intrum and Italian bank Intesa Sanpaolo have finalised a strategic agreement to create market-leading servicer of non-performing loans (NPL) in Italy.

The agreement creates an establishment of a market leading servicer of non-performing loans (NPLs) in Italy.

The servicing platform, Intrum Italy, is majority owned by Intrum with Intesa Sanpaolo retaining a 49% minority equity stake. Together with the establishment of the platform Intesa Sanpaolo divested a  €10 billion nominal value NPL portfolio which Intrum has taken a 41% minority equity stake in and which will be serviced by Intrum Italy. The combined investment level for both parts of the agreement is more than €600m, as previously communicated.

Mikael Ericson, President and CEO of Intrum said “The closing of this agreement ensures we are at full strength in Italy. We look forward to further developing this long-term partnership in the strategically important Italian market.”