MILAN, 23 July. (Reuters) – State Italian bank Monte dei Paschi di Siena BMPS.MI said on Friday it would free up capital through two synthetic transactions that would reduce credit risk on corporate loans by € 1.4 billion ($ 1.7 billion).
Monte dei Paschi (MPS) said it repackaged the loans into securities and shifted risk to the junior and mezzanine tranches to finance Christofferson Robb & Company through a guarantee agreement.
MPS said this is the first of its kind in Italy in a so-called “stage 2” loan – assets that are beginning to show signs of deteriorating credit quality.
The deal was arranged by Intesa Sanpaolo, and Chiomenti acted as legal adviser.
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(Report by Valentina Za, edited by Maria Pia Quaglia)
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