APS and EBRD invest in „the largest NPL portfolio transacted in the last 4 years in Romania”: 1,800 loans with a total transaction size of approximately €400 million

APS Group, a leading NPL investor and servicer active in 15 countries which manages over 100 NPL portfolios with a total nominal value of more than EUR 11 billion, announced the successful completion of Project Delta on April 30, 2024.

„This significant transaction involved the acquisition of a participation in a portfolio of sub-performing and non-performing loans secured with real estate collateral in Romania, as well as unsecured loans, with a total transaction size of approximately €400 million. The portfolio comprised almost 1,800 loans, showcasing the scale and diversity of the assets involved.” – according to the press release.

The European Bank for Reconstruction and Development (EBRD) financed 30% share of the participation in the portfolio, with the remaining funding provided by APS funds and managed accounts. APS Investments, which has diligently worked on this transaction since February 2023, underwrote the process, ensuring a seamless and successful outcome.

This transaction is the first project under the EBRD’s new €300 million NPL Resolution Framework II that involves participation in an NPL portfolio. The framework supports efforts to address the challenge of persistently high levels of NPLs in many of the economies where the Bank invests.

While the NPL ratio in Romania improved to some 2.65 per cent in 2023, strengthening the sector’s resilience and supporting a functioning market for NPL sales remains a priority in the region.

„We are proud to have finalized the Project Delta transaction, which represents a significant achievement in one of our core markets,” stated Martin Machoň – CEO and owner of APS Investments. „The collaboration of EBRD and APS has been instrumental in navigating this complex transaction.”

„This is the largest NPL portfolio transacted in the last 4 years in Romania. We are glad to have supported EBRD and our investment branch with this strategic opportunity, once again solidifying our corporate asset portfolio„, said APS Romania CEO, Radu Dobre.

The participation in the portfolio was acquired from Piraeus Bank, Greece, which successfully concluded the transaction, marking a strategic move in their divestment strategy.

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APS Group was established in 2004, and during its 18 years of existence, the company has managed to take a top position in 15 other countries. It operates mainly in the Central and South-Eastern European markets. The group’s area of expertise consists of 3 pillars: distressed debt investments, alternative asset management, and real estate investments. APS Group currently manages 100 non-performing loan portfolios with a total nominal value of over EUR 11 billion.

The EBRD is a leading institutional investor in Romania. To date, the Bank has invested more than €10.9 billion in 525 projects in the country, focusing on further developing the financial sector and capital markets, financing infrastructure and boosting private-sector productivity.