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Credits Act. 20 Jan 2021

BBVA sells a real estate loan and asset portfolio from Unnim

BBVA has signed the sale of a portfolio consisting of loans and real estate assets from Unnim for a gross total of approximately €700 million. The goal of the transaction is to reduce the exposure to non-productive assets.

BBVA closed an agreement with global investment fund company KKR (primarily through its KKR Private Credit Opportunities Partners III fund) to transfer the ownership of a real estate loan and asset portfolio (dubbed 'Dakar'), with a gross value of approximately €700 million. The portfolio consists of two types of real estate loans (with and without mortgage guarantees) and REOs (Real Estate Owned) assets.

Over the past three years, BBVA has completed several loan portfolio sale transactions, mostly real estate and mortgage loans. In December 2019, BBVA completed its two largest sales of written-off loan portfolios: The sale of a portfolio with a gross value of approximately €2.5 billion ('Juno' portfolio) and the transfer of a portfolio comprised of loans to small and medium sized enterprises (SMEs) with an approximate gross value of €2.1 billion ('Hera' portfolio).

In December 2018 the bank completed the sale of a €1.2 billion portfolio (dubbed ‘Ánfora’) primarily consisting of mortgages (both non-performing and in default loans). In June 2018, BBVA sold a property development loan portfolio worth €1 billion – called ‘Sintra’ – and in July 2017 it sold another portfolio of loans to developers with a gross value of around €600 million, known as ‘Jaipur’.

Furthermore, in October 2018, following an announcement in November 2017, BBVA completed the transfer of its real estate business in Spain to Cerberus Capital Management. The closing of the transaction resulted in the sale to Cerberus of an 80 percent stake in Divarian, the company created to transfer the real estate portfolio. BBVA retained the remaining 20 percent stake.

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