MILAN (Reuters) - Banca del Fucino, Rome’s oldest bank, has securitized and sold nearly 300 million euros ($335 million) worth of non-performing loans as part of its rescue plan, securitization specialist Zenith Service said.
Italy’s state controlled bad loan manager AMCO, formerly known as SGA, has taken on Banca del Fucino’s problem loans to clean up its balance sheet as the lender prepares to merge with another Rome-based bank, Igea Banca, in a rescue deal.
Italian banks piled up soured loans during a deep recession. In a securitization, bundles of loans are turned into securities that are sold to investors.
The asset-backed securities will be issued by a special purpose vehicle and sold through a private placement to institutional investors, Zenith said.
Reporting by Maria Pia Quaglia; Editing by Edmund Blair