Kedipes to sell €58.4 million loan portfolio to Bank of Cyprus

State-owned asset management company Kedipes on Tuesday announced the signing of an agreement with the Bank of Cyprus (BoC) for the sale of a portfolio of serviced and up-to-date restructured loans, with a total gross accounting value as of December 31, 2022, amounting to €58.4 million.

According to the announcement, the transaction is not expected to have significant implications on Kedipes’ financial standing.

What is more, Kedipes emphasised that this transaction is part of its strategic implementation, which involves selling loan portfolios as a significant tool to deleverage its managed portfolio.

It continued by clarifying that this strategic move aims to maximise the repayment of the state aid provided by the Republic of Cyprus to the Cooperative Cyprus Bank in 2018 as soon as possible.

To date, the company has paid a total sum of €1.16 billion to the Republic of Cyprus as part of the aforementioned state aid.

Furthermore, the announcement noted that the completion of the transaction is expected to take place within the first quarter of 2024 and is subject to the receipt of relevant regulatory approvals.

Concluding its statement, the company explained that involved borrowers, guarantors, and insurance providers have been notified regarding the intention to sell the loans included in the above agreement, through letters sent to them in accordance with Article 18(1)(b) of the Credit Acquisitions and Related Matters Law of 2015 (Law 169(I)/2015).

Finally, a similar announcement was issued by the Bank of Cyprus, which noted that this particular transaction supports the bank’s strategy for a medium-term increase in its serviced loan portfolio.