June 7, 2019 / 10:44 AM / 4 months ago

Elliott, Bain, Cerved eye Eurobank's loan service unit -sources

ATHENS, June 7 (Reuters) - Greece’s Eurobank has received a non-binding offer for its Financial Planning Services (FPS) unit from a consortium comprising U.S. funds Elliott and Bain Capital and Italian credit manager Cerved, banking sources close to the process said.

FPS will be sold as part of a planned 7.5 billion euro ($8.5 billion) multi-asset securitisation package by Eurobank, code named Cairo.

“A rival suitor, U.S. fund Pimco, is also looking into it,” one of the bankers, who declined to be named, said. There was also a third potential buyer for the Cairo package, but the banker did not say who.

Eurobank, Greece’s third-largest lender, expects binding bids for the Cairo sale in July.

Greek banks are working to reduce their bad loans and meet targets on so-called non-performing exposures (NPEs) agreed with European Central Bank regulators.

Eurobank’s NPEs dropped to 36.7% of its loan book in the first quarter, from 37% at the end of December, and management has said that cleaning up its balance sheet remained the bank’s top priority.

The bank has already received binding bids for another 2.0 billion euro securitisation of non-performing mortgage loans, code-named Pillar.

Ratings agency DBRS has announced a provisional rating for the Pillar senior note, making it the first Greek NPE (non-performing exposure) securitisation with a public rating - BB (low).

Late last month Eurobank’s Chief Financial Officer Harris Kokologiannis told analysts that six investor groups had expressed interest in these transactions with four submitting bids. He did not provide names. ($1 = 0.8881 euros) (Reporting by George Georgiopoulos and Valentina Za in Milan Editing by Susan Fenton)

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