August 5, 2019
First Financial Network (FFN), the loan sale and financial advisor, has announced an offering of three portfolios of Ukrainian real estate assets and non-performing loans (NPLs) totaling USD 1.35bn.
The upcoming auction marks the largest bulk sale of Ukrainian NPLs to date. Due diligence and bidding will be conducted on FFN's secure platform. Bidding begins on 6 August 2019.
The largest of the three pools, the USD 540m IMEXBANK loan portfolio, includes the real estate-owned Chornomorets Stadium in Odessa, which seats 35,000 fans and was built at a cost of roughly USD 500m in 2011. The portfolio includes the stadium’s associated properties — a 5-star, 150-room hotel, retail center, office space, fitness center, parking and city sports museum — along with 40 NPLs.
The second pool is a USD 398m loan portfolio made up of 678 NPLs from 21 intervened banks, and the third pool is a USD 413m portfolio with 290 NPLs from 12 intervened banks, all of which are collateralized by commercial, industrial and residential real estate, vehicles, equipment and property rights.
The offering follows FFN’s successful completion of the first-ever bulk NPL sale in the Ukraine with the disposition of a USD 235m portfolio made up of 35 corporate NPLs and four related multi-currency tranches, collateralized by commercial real estate and businesses spanning retail, food, equipment, agriculture, land and more
FFN was originally approached by the United States Department of Treasury in 2015 to advise regarding the banking crisis in the Ukraine and to provide its expertise in marketing and selling NPL portfolios, with the ultimate goal of bolstering the country’s economy through international investments. The company also has extensive experience selling NPL portfolios in the United States, Canada and Spain, as well as in economically challenged nations such as Mexico and Nicaragua.