Aktiv Kapital Scores Large Debt Portfolio from Bailed-Out Spanish Bank

http://www.insidearm.com/news/00040054-aktiv-kapital-scores-large-debt-portfolio/

Recently-rescued large Spanish bank Bankia reported Wednesday that it had sold nearly $1 billion in charged-off loans to two companies, European ARM giant Aktiv Kapital and Luxembourg-based Oko Investments.

Bankia is the third-largest lender in Spain and received a $24 billion bailout from the Spanish government earlier this year. The sale Wednesday was part of the company’s plan to divest itself of non-strategic and non-performing assets.

The bank described the portfolio as 127,000 loans, with an average age of five years. Around 80 percent were made to consumers, all of which were sold to Aktiv. Oko bought the loans made to businesses. The portfolio’s loan value was about $800 million ($970 million).

Aktiv and Oko won the rights to purchase the portfolio after a competitive auction process.