Six investors shortlisted for the sale of loans by state-owned asset manager KEDIPES

Six investors have been shortlisted in the context of the project “Ledra” concerning a sale a €477 million package of performing loans by state-owned asset manager KEDIPES.

The deadline for the transaction provides that final binding offers will be submitted by the end of October.

Sources told CNA that at the initial stage 13 investors entered the virtual data room, with six remaining in the short list and will enjoy full disclosure concerning the data associated with the loans.

The same sources refused to disclose the names of the investors due to confidentiality agreements.

According to the same sources, although KEDIPES would prefer signing a deal with a single investor, transactions with more than one investor cannot be overruled, as the process provides the submission of bids either for the whole portfolio or individual parts. The €477 million package has been divided to four separate parts.

The completion of the transactions would pave the way for additional prospective loan sales by KEDIPES, while it will provide the necessary cash reserves for the acquisition of more non-performing loans if the Finance Ministry receives the green light by the EU General Directorate for Competition for the evolution of KEDIPES to a asset manager for the entire banking system of Cyprus.

In case KEDIPES gets the go ahead it could acquire NPLs both from banking institutions and credit acquiring companies up to €1.5 billion, the Finance Ministry said.

KEDIPES was set up in 2018 as the residual entity of the former state-owned Cyprus Cooperative Bank whose performing part was sold to Hellenic Bank, assisted by €3.5 billion in state aid. KEDIPES is mandated repay the state aid by winding down the CCB’s non-performing loans.

KEDIPES assets as at 31 March 2021 amounted to €7,49 billion in nominal value, including cash of €188 million, immovable property amounting to €619 million and performing loans of €628 with NPLs estimated at €6 billion. Since September 2018, KEDIPES has paid the state €400 million and is in the process of providing the state with properties amounting to €140 million.