The record breaker.
The United Bulgarian Bank has sold the biggest portfolio in Central and Eastern Europe. Only few can handle such an acquisition. EOS Matrix shows how it’s done.
Portfolios like these are breaking all records. In 2018, the United Bulgarian Bank (UBB), owned by the Belgian KBC Group, sold a package with a nominal value of EUR 243 million. The package with mostly unsecured non-performing loans (NPLs) of private customers went to EOS Matrix in Bulgaria. ‘That’s the biggest single transaction in Central and Eastern Europe that we know of so far’, says Nikolay Lazarov, Director of Problem Loans Collection at UBB. It should make the Bulgarian NPL market, which has been booming for years, pick up speed again this year. ‘I expect the volumes traded in 2018 to be above half a billion euros’, says Mr Lazarov. In 2017, the figure was almost EUR 400 million.
With deals of this size and scope, the air on the purchaser side gets rather thin. ‘We’re one of the few Bulgarian specialists to have the financial clout and know-how to buy and process such a large portfolio’, says Rayna Mitkova, Managing Director of EOS Matrix in Bulgaria. In the bidding procedure, the company had a further advantage: UBB is no stranger to EOS Matrix. The bank has sold almost all of its portfolios to the EOS subsidiary in recent years. ‘We know the client so well that we were able to assess the latest receivables package very accurately and therefore calculate a particularly fair price’, explains Ms Mitkova.
Working under high pressure.
‘Thanks to the sale of receivables, we clear our balance sheet and can focus more intensely on our core business’, says Mr Lazarov. He praises his preferred buyer: ‘EOS Matrix is a sound and serious partner with an excellent reputation’. Apart from that, the international corporation has an extensive network of experts who already have a lot of experience with secured receivables packages. ‘Thus, EOS can properly evaluate portfolios and bring about acquisitions quickly’.
Acting quickly after the purchase of the funds is also the rule at EOS Matrix. In next to no time, the company created a team of 45 employees. ‘Our personnel department hired qualified employees under high pressure’, says Ms Mitkova. Because most receivables are in court, EOS Matrix works with both internal and external lawyers. The Managing Director is satisfied: ‘Everything is going according to plan’. She and her team have shown how record acquisitions can be mastered with confidence.
This was the challenge: Finding adequate buyers.
Finding suitable buyers for non-performing receivables is a great challenge facing Nikolay Lazarov, Director of Problem Loans Collection at the United Bulgarian Bank. With EOS Matrix in Bulgaria, he has pulled off a record deal.