B2Holding acquires unsecured NPL portfolio in Cyprus for new partnership with Waterfall Asset Management
During the first week of January 2020, the B2Holding Group signed an agreement with Bank of Cyprus Public Company Ltd. for the acquisition of an unsecured non-performing loan portfolio. The portfolio with a Face Value of EUR 400mlncomprises of a mix of loan products issued to individuals and small businesses.
At final completion the acquired portfolio will be held jointly between Waterfall and B2 Holding. The entire portfolio will be serviced by the local subsidiary B2Kapital Cyprus.
“B2 Holding is proud to announce the acquisition of this portfolio in Cyprus as well as the extension of the partnership with Waterfall Asset Management. We also thank Bank of Cyprus for the professional conduct and close cooperation which enabled us to enter into the agreement in such a short time period.” states Johannes Raschke, Chief Investment Officer of B2Holding.
Established in 2017, B2Kapital Cyprus is already servicing a mixed non-performing loan portfolio with secured and unsecured SMEs and SBs claims which was previously acquired from another vendor. With around EUR 6.5bln of NPLs in Cyprus, B2 Holding’s mission is to further grow the local platform and to present a credible alternative provider in the servicing and acquisition of non-performing loans.
George Christoforou, Head of Corporate & Secured and Regional Director Central and South East Europe commented: “While we will be seeking further investments in Cyprus, at the same time, our span of services is available to other institutional NPL acquirers. Market participants can benefit from our excellent servicing capabilities and the ability to close swiftly transactions thanks to our Credit Acquiring Company which is one of the very few in the country. We appreciate the way Bank of Cyprus handled this process and looking forward to developing the relationship further”.
“Developing our servicing platforms is a major focus for the B2Holding Group in 2020. The successful completion of this transaction will support this target while at the same time increases B2 Holding’s footprint in Cyprus”, adds Erik Just Johnsen, CEO of B2Holding ASA.
Bank of Cyprus is the largest lender in Cyprus. Since 2013 it has engaged into notable deleveraging initiatives. As a financier of the local economy for more than 120 years, its role into a well-functioning NPLs market is pivotal.
Even though this transaction would normally be below the threshold for announcement, B2Holding discloses this transaction in order to be fully transparent.
About B2Kapital Cyprus Ltd.
B2KAPITAL CYPRUS LTD (henceforth “B2KAPITAL”) is a member of the B2 Holding Group. B2 Holding ASA is a Norway-based company, located in Oslo, and listed on the Oslo Stock Exchange (Oslo Børs). The B2Holding Group operates in over 22 European markets, mainly in Scandinavia, the Baltic and Central and South East Europe, providing banks and institutional vendors with specialised financial services, including the management of Non-Performing Loans (NPLs). Cyprus and other markets in the Balkans region are a key priority for the B2 Holding Group. As at March 2018 the B2 Holding Group maintained portfolios under management with a total value of approximately €14 billion, while the cash available for portfolio purchases reached €500 million. B2KAPITAL was established in December 2017 with the goal to assume an active role in the Cyprus financial services industry, focusing primarily on the purchase of NPLs from the entire spectrum of retail banking & SME businesses. For more information please visit www.b2kapital.com.cy