August 2019

NPL and other impaired loans Eight months of deals

22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 1 We have reached almost 23 billion euros in transactions on the Italian NPEs market since the beginning of the year, with as many as 7 billion euros in deals announced between the end of July and the beginning of August, while at least other 44 billion euros are coming in the year. The figure emerges from the BeBeez database, which processes public data, and follows the 101 billion euros gross value of transactions announced in 2018 (see here the Report Npl 2018 by BeBeez).

Among the most active in the disposals of recent weeks was Montepaschi, which sold UTPs for 455 million euros (Papa2 portfolio) to Cerberus and 700 million euros in NPEs to Illimity, divided into a portfolio of secured and unsecured agricultural bad loans worth 240 millions and a portfolio of Transactions unsecured corporate UTPs of 450 million. has also sold 1.1 billion euros of announced unsecured bad loans towards SMEs to SPF Investment Management, while it is working on on NPEs the sale of another billion euros of UTPs (Project Dawn). portfolios Among the most important transactions announced in the period January-August 2019 there have reached are the 7.4 billion euros securitization of the ACE portfolio of Banco Bpm, under the 23 billion euro agreement with Credito Fondiario and the Elliott fund; and the 3 billion euros of UTPs that since the beginning is selling to Prelios under the agreement that will also assign to the servicer of the year 6.7 billion euros of UTPs under management.

With regard to the expected transactions, on the other hand, the lion's share is made up of the 13.3 billion euros of Utp that Unicredit has decided to put on the market as part of an agreement that provides both the sale of part of this portfolio and the granting of a management mandate, along the lines of the agreement between Intesa Sanpaolo and Prelio. In this case, BeBeez assumed that half of the portfolio will be sold and half will be given under management. In the count of incoming transactions there are then about 7 billion euros of UTPs that MPS could yield to SGA, while there are still on the market about 6 billion euros of very old Italian bad loans in the portfolio of Credit Agricole.

22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 2

Who bought and who sold NPEs in Italy in 2019

mln euro Date Seller Type of NPEs Buyer Article gross secur. (Elliott buys 95% equity

Feb-19 Banco Bpm 7.400,0 Npl (ACE Project) tranche) BeBeez Utp (part of a 10 billion portfolio, the

Aug-19 Intesa Sanpaolo 3.000 Prelios sgr BeBeez remaining 5 billion will be managed) BPER e Banco di

Feb-19 1.300,0 Npl UnipolRec BeBeez Sardegna

Jul-19 Unicredit 1.100,0 Npl unsecured towards pmi SPF Investment Management BeBeez Banca Popolare di

Jul-19 Sondrio 1.000,0 Npl na BeBeez

Jan-19 Bnl Bnp Paribas 968,4 Npl secured (73.4%) and unsecured (26.6%) secur. Juno 2 srl with GACS BeBeez

Jul-19 UBI Banca 740,0 Npl leasing Credito Fondiario BeBeez 22 banks of Cassa secur. (Varde and Guber tranche

Mar-19 734,0 Npl secured (85%) and unsecured BeBeez Centrale Banca equity)

Jul-19 na 700,0 Npl unsecured retail Banca Ifis BeBeez

Jul-19 na 690,0 Npl secured and corporate Banca Ifis (FBS) BeBeez

Apr-19 Banco Bpm 650,0 Npl leasing Illimity BeBeez

Aug-19 Mps 455,0 Utp corporate secured (Project Papa2) Cerberus Capital Management BeBeez

Jul-19 Mps 450,0 Utp corporate predominantly unsecured Illimity BeBeez

May-19 na 350,0 Unsecured (94%) and secured (6%) PLNs Guber Banca BeBeez

Mar-19 Banca del Fucino 310,0 mix of NPL and Utp secur. with SGA BeBeez

Jul-19 Unicredit 240,0 Npl unsecured corporate Illimity BeBeez

Jul-19 Mps 240,0 Agricultural Npl secured and unsecured Illimity BeBeez secur. (Phinance Partners and

Mar-19 Eni Gas e Luce spa 230,0 mix of Npl and Utp from utility contracts BeBeez various investors)

Aug-19 Hoist Finance 225,0 Npl unsecured secur. (Carval buys senior tranches) BeBeez 22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 3 mln euro Date Seller Type of NPEs Buyer Article gross Npl retail unsecured (51 million immediately

Apr-19 Unicredit 210,0 and another 160 million in 2019) MB Credit Solutions BeBeez and Guber Banca

Jul-19 Unicredit 210,0 Npl unsecured corporate (via Gaia spv dsrl) BeBeez

Aug-19 Mps 202,0 three Utp portfolios mainly secured na BeBeez NPL from renewable energy financing

Jul-19 Intesa Sanpaolo 180,0 WRM BeBeez (Progetto Luce) Banco Desio and an POS srl (structured by Phinance

Aug-19 NPL investor 180,0 two different Npl portfolios* Partners) BeBeez

Jul-19 UBI Banca 157,0 Npl factoring nd BeBeez secur. (equity tranche Varde and

Jan-19 Banca Valsabbina 150,0 Npl secured (30%) and unsecured (70%) BeBeez Barclays) CR Asti and

Jul-19 Biverbanca 150,0 Npl international investment fund BeBeez various NPL portfolios sold during the first

Jun-19 Group CR Asti 149,0 half of 2019 nd BeBeez

Aug-19 Mps 137,0 mixed secured and unsecured NPLs nd BeBeez

Jul-19 Leasing companies 80,0 Npl lesing Illimity BeBeez two NPL corporate secured portfolios from

Jul-19 banks 55,0 industrial and commercial assets Illimity BeBeez CentroMarca Banca di

Apr-19 Credito Coop. Treviso 46,0 Npl B2 Kapital BeBeez e Venezia Npl leasing guaranteed by industrial and

Mar-19 na 40,0 Illimity BeBeez commercial assets Banca Mediocredito

Mar-19 40,0 Npl real estate leasing secur. BeBeez FVG

Feb-19 BCC Monsile 33,0 Npl unsecured Balbec Capital BeBeez BCC Banca via Multiseller Npl platform of

Feb-19 Centropadana 31,5 Npl secured and unsecured Banca Akros BeBeez

Mar-19 Italian bank 30,0 Npl secured (60%) and unsecured Illimity BeBeez

22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 4 mln euro Date Seller Type of NPEs Buyer Article gross Unicredit Bank Npl secured and unsecured under Hungarian

Jul-19 Hungary 28,0 law EOS Faktor Zrt BeBeez a bank active in

Mar-19 25,0 Npl single name (two hotels) Illimity BeBeez Northern Italy UniCredit a.d. Banja Luka and UniCredit Npl secured and unsecured towards SMEs and

Jul-19 Bank d.d. Mostar 24,5 enterprises under Bosnian law B2 Kapital BeBeez Unique corporate NPL guaranteed by

Jul-19 na 23,0 logistical assets in northern Italy Illimity BeBeez

May-19 Mediocredito Italiano nd Npl corporate unsecured Sagitter srl BeBeez Npl secured in the context of a forward flow

Jul-19 Banca Sella nd sale project B2 Kapital BeBeez Total 22.963,4

Source: BeBeez's calculations on the basis of public data - *the portfolio sold by the investor consists of claims originating from another Italian bank

22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 5 Expected deals on NPEs in Italy in 2019

mln euro Seller Type of NPEs Potential buyer Article gross about

Mps 7.000 Utp SGA BeBeez Popular banks members of

Luigi Luzzatti 500-1000 Npl secur. with GACS BeBeez Utp (part of a 13.3 billion portfolio, the rest will be Dea Capital, Clessidra sgr, doValue,

Unicredit 6.650 managed) Intrum BeBeez unsecured and secured plots to retail and SMEs Cerberus-Banca Ifis, CRC-Bayview,

Credit Agricole 6.000 BeBeez (secondary) Arrow Global Npl and Utp (as part of a project to sell the

Banca Popolare di Sondrio 4.000 na BeBeez management platform) cartol (Pimco-Gmw.Finance Roma with

Unicredit 2.000 Utp real estate (Sandokan 2) BeBeez Intesa Sanpaolo), spv Yanez srl Npl secured (Beyond the Clouds) (secondary

CRC e Bayview 2.000 na BeBeez market)

Carige 1.900 Npl and Utp EMS BeBeez

Rev 1.500 Npl secur. with Gacs BeBeez

Unicredit 1.400 Npl unsecured (portafoglio Roma) na BeBeez impaired real estate loans (Progetto Rep, ex

Intesa Sanpaolo 1.350 na BeBeez Progetto Monopoli) Iccrea Banca e 60 banche

1.200 Npl secur. with Gacs BeBeez del gruppo

Bper 1.000 Npl na BeBeez

Unicredit 1.000 Npl secured (progetto Milano) na BeBeez

UBI Banca 1000 Npl secur. with Gacs BeBeez

Unicredit 1000 Utp (Project Dawn) na BeBeez

CreVal 800 NPL and Utp (by 2020) na BeBeez

Unicredit 750 Npl secured (portafoglio Matera) na BeBeez

22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 6 mln euro Seller Type of NPEs Potential buyer Article gross

Intesa Sanpaolo 740 Utp former banks of Veneto SGA BeBeez

Bnl Bnp Paribas 700 Npl secured and unsecured na BeBeez 39 banks in the Cassa

Centrale Banca Group 360 Npl secured (70%) and unsecured (30%) na BeBeez

Unicredit 300 Npl secured (portafoglio Capri) na BeBeez Bain Capital Credit, Apollo

Intesa Sanpaolo 250 Utp (Progetto Levante) BeBeez Management, Bayview

CheBanca! 150 Npl secured (progetto Charlot) na BeBeez

Mps 130 Utp 5-6 single name (portfoglio Lima) Bank of America Merrill Lynch BeBeez

na 50 Impaired loans Frontis Npl and IBL Banca BeBeez 43.980

Source: BeBeez's calculations on the basis of public data

22 July 2019 - EdiBeez srl – operative office - Corso Venezia, 8 - 20121 Milan - registered office Corso Italia, 22 - 20122 Milan - Italy 7