KRUK wins auction to purchase EUR 1bn debt portfolio in Italy

The KRUK Group, a leader of the debt management market in Central Europe, has won an auction to purchase a debt portfolio in Italy. The portfolio’s nominal value is EUR 930m (approximately PLN 4bn).

“After less than one year from entering the Italian market, KRUK has become an equal partner for the largest financial institutions of the country, including the largest Italian banks. The acquired portfolio comprises consumer debts, most preferred by KRUK. It will substantially expand KRUK’s customer base in Italy. We plan to promote in Italy our amicable approach, as we are doing on other markets,” said Piotr Krupa, President of KRUK S.A.

KRUK launched its Italian operations in November 2015. To date, the company has purchased debt portfolios from UBI (Unione di Banche Italiane), with a nominal value of PLN 350m, and Monte dei Paschi di Siena, with a nominal value of PLN 1.5bn. Once the latest transaction is closed, the nominal value of debt portfolios purchased in Italy will total almost PLN 6bn. To compare, by the end of H1 2016 the entire KRUK Group had purchased portfolios with a total nominal value of over PLN 33bn.

Currently, KRUK actively invests across seven European markets - Poland, Romania, the Czech Republic, Slovakia, Germany, Italy and Spain. In the first half of the year, KRUK saw considerable interest of banks and financial institutions in selling debt portfolios. The trend is expected to continue in H2 2016. In H1 2016 alone, the Group invested PLN 727m in debt portfolios.