Six investors short listed to take over Kedipes loans

Six investors have been shortlisted as candidates for the acquisition of a €477m package of performing loans belonging to state-owned asset manager Kedipes.

According to the Cyprus News Agency, 13 investors had showed interest initially with six remaining on the short list. The shortlisted companies will be granted full access to the data concerning the loans.

Final binding offers must be submitted by the end of October.

Citing unnamed sources, CNA said although Kedipes would prefer signing a deal with a single investor, transactions with more than one could not be ruled out.

The process provides for submission of bids either for the entire portfolio or individual parts. The €477m package has been divided into four separate parts.

Completion of the transactions would pave the way for additional loan sales by Kedipes, and provide the necessary cash reserves for the acquisition of more non-performing loans if the finance ministry receives EU approval to turn Kedipes into an asset manager for the entire banking system.

In the event it gets the go ahead, it could acquire NPLs both from banks and credit acquisition companies of up to €1.5bn, the finance ministry has 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 €3.5bn in state cash.

Kedipes must repay the state aid by winding down the co-ops non-performing loans.

At the end of March, Kedipes’ assets amounted to €7.5bn in nominal value including €188m in cash, immovable property worth €619m and performing loans of €628m with NPLs estimated at €6bn.

Since September 2018 Kedipes has paid the state €400m and is in the process of providing the state with properties amounting to €140m.