31 March 2017, 08:00 CEST
Axactor acquires a large unsecured non-performing loan (NPL) portfolio from Bank Norwegian in Sweden
Axactor has acquired the largest unsecured NPL portfolio since starting up in the fourth quarter of 2015. The portfolio is originated by Bank Norwegian in Sweden and includes unsecured credit with a total Outstanding Balance (OB) of approximately € 105 million, across close to 15,200 thousand open accounts of individual loans and credit card debt. This portfolio acquisition will increase Axactor’s ERC by more than 30%.
The portfolio transaction is another primary market purchase, which will secure a significant increase in the existing cash collection, generated by Axactor’s owned portfolios.
“This is our largest portfolio acquisition ever and will quantum leap our business in Sweden, contributing to the strong and profitable revenue growth in 2017 and future years. This Portfolio reinforces Axactor’s commitment to making Sweden a key market within the Group. We are very honoured by the confidence Bank Norwegian has shown in Axactor by granting us this contract.”, says Endre Rangnes, Axactor CEO.
“This acquisition demonstrates Axactor’s ability to close key large portfolio purchases in the Nordics. Taking account of the strong portfolio pipeline outside of this transaction, we can expect many more to follow across the group in 2017.”, says Robin Knowles, Axactor EVP Portfolio.
The investments will be financed by Axactor’s available cash and our existing credit facilities with a 50/50 split of equity/debt. Closing of the transaction is expected to be 21st April.