The Norwegians from B2 Holding officially announce the acquisition of the Fain portfolio from Raiffeisen with a nominal value of EUR 271 million

B2 Holding ASA entered through its local branches, B2 Kapital Portfolio Management SRL and Debt Collect Agency SRL, in acquisition agreements of a non-performing loan portfolio with a nominal value of EUR 271 million in Romania.
The portfolio consists in approximately 2,500 loans, both retail and corporate, secured and not secured, the buyer stated today through a release.
„The portfolio acquisition is an important benchmark in the continuous development of the B2Holding company and in the continuous growth in Romania”, says Olav Dalen Zahl, CEO of B2Holding ASA.
Even if this transaction would normally be close to an announcement, B2Holding is disclosing this transaction to be fully transparent with the seller’s announcement, stated B2 Holding.
The sale of non-performing loan portfolio of Raiffeisen was announced for the first time on July 18th 2017 by the transactions journal MIRSANU.RO, exclusively writing on December 3rd, 2017 the the Norwegian group B2 Holding is negotiating the acquisition of the non-performing loan portfolio of Raiffeisen.
The parties did not make public the price of acquisition.
The transaction with the code name Fain has an estimated price of approximately EUR 30 million, according to sources on the market, but a value yet to be confirmed by the involved parties.
The PwC advisers have the sale mandate in the Fain transaction.
Raiffeisen Bank International, the mother – bank of Raiffeisen Bank Romania, reported on September 30th, 2017 that it registered a non-performing loan rate within the local branch of 7.6%, according to the last financial report.
For the first nine months of the year, the Romanian operation of the Raiffeisen Bank International reported a profit of EUR 74 million, net income from interests of EUR 194 million, assets of EUR 7.7 billion, 5,372 employees and 2.297 million clients in its portfolio.
Two thirds of the loan portfolio is from the natural persons area, and 32% represents the rate of companies clients.
The market of non-performing loans from Romania reaches EUR 2 billion this year and is the second from the most dynamic profile markets in the region.
Raiffeisen Bank entered the Romanian market in 1994, when the Austrian group opened a branch in Bucharest. Raiffeisen Bank Romania resulted from the fusion, concluded in June 2002, of the two entities of the group Raiffeisen in Romania – Raiffeisenbank Romania and Banca Agricolă Raiffeisen, incorporated in 2001 and subsequently taken-over by the Austrian group from the Romanian state.
B2 Holding entered indirectly the profile market in Romania by acquiring, in 2016 the Bulgarian debt management company Debt Collection Agency (DCA).
In order to strengthen its position, B2 Holding bought together with EOS the Blue Lake portfolio from BCR and is one of the most active buyers on a market targeting international specialized players such as Kruk, APS, EOS, Kredyt Inkaso, Intrum, respectively strong financial investors like Deutsche Bank or International Finance Corporation (IFC), the investment division of the World Bank.
B2 Holding is listed at the Oslo Stock Exchange (Norway) and has strong liquidities, being interested both in non-performing loans portfolio acquisitions, and fusions and acquisitions opportunities. The Norwegian company reported for the third quarter non-performing loans portfolio acquisitions of Norwegian Crowns 330 million (approx. EUR 33 million) in the south-eastern Europe, region operating in Greece, Bulgaria and Romania and where its partner for such portfolios is EOS.
In total, during the third quarter, B2 Holding reported non-performing loan portfolios acquisition in the amount of Norwegian Crowns 702 million, respectively an earning margin of 51% with EBITDA of Norwegian Crowns 262 million. In November, B2 Holding announced the acquisition of a non-performing loan portfolio of EUR 84 million from UniCredit Bulbank from Bulgaria.
Also in November, the Norwegian group drawn capital from the international financial markets by issuing stocks and shares of EUR 200 million with due date in 2022 for a coupon interest of 4.25% + EURIBOR interest at every 3 months, the money being allotted for general corporate purposes.
On the profile market in Romania, B2 Holding is in competition with Kruk, APS, Kredyt Inkaso, Intrum or EOS, the latter being also a consortium partner in different portfolio acquisitions.