doValue says bids due next week for 5 billion euro Greek bad loan portfolio

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MILAN -Non-binding offers for a non-performing loan (NPL) portfolio worth around 5 billion euros ($5.7 billion) put on the block by Greece’s bad bank liquidator PQH are due next week, Italy’s biggest problem loan manager doValue said.

In a call with analysts after doValue reported better-than-expected 2021 results, Chief Executive Andrea Mangoni said the group had teamed up with funds Bain and Fortress in the race to secure the portfolio, dubbed ‘Ariadne’.

The three have worked together before. A consortium comprising doValue Greece, Bain and Fortress last year was picked in a 6 billion euro bad loan securitisation sale by National Bank of Greece.

Bain and Fortress invested to buy the notes backed by the bad loans, while doValue provided the debt recovery services.

Given the huge size of the loan pool, the bidding process for Ariadne will be very competitive, Mangoni said, adding the tender was one of doValue’s priorities at present and he was optimistic on its outcome.

“We are positive on Ariadne,” he said.

Appointed by the Bank of Greece, PQH is liquidating the bad assets of 12 lenders that were shut down between 2011 and 2014. The assets amounted in total to around 9 billion euros and consisted mainly of impaired loans. ($1 = 0.8808 euros)

(Reporting by Valentina Za; editing by Agnieszka Flak and Keith Weir)