FFN, DebtX U.S. platforms announce first trading for NBU's $410 mln NPL
U.S. platforms First Financial Network (FFN, Oklahoma-City) and The Debt Exchange, Inc. (DebtX, Delaware) have announced an initial sale of non-performing loans (NPL) on behalf of the Deposit Guarantee Fund of Ukraine.
"This is an initial sale of 52 loans totaling $170 million (UAH4.6 billion)," FFN said on its website, adding that the platform also will sell the loans on behalf of the National Bank of Ukraine (NBU).
According to the report, the FFN pool (UKR-2017-01) is composed of non-performing commercial loans secured by various collateral types including a large operating retail food business, an equipment manufacturer, an agricultural processor, various commercial real estate properties, land and other assets.
FFN said that this will be a portfolio offering consisting of one pool. Additional larger balance sales are anticipated to follow.
FFN said that Ukraine’s banking sector has been in a crisis since 2014. Over 90 banks have failed. Total non-performing loans are estimated to be $28 - $38 Billion USD. Multinational groups have been assisting and supporting the Ukraine government in developing methods to resolve these issues and strengthen the banking sector.
According to the report, due diligence information will be made available to qualified investors via FFN’s website on July 24, 2017 and online sealed bids for the pool are due on September 19, 2017.
The Debt Exchange is conducting a sealed-bid auction value of about UAH 6.5 billion ($240 million) on loans obtained from the liquidation of several banks, DebtX said.
DebtX said that due diligence information will be made available soon and sealed bids for the pool will be due in September.