The new owner of VeloBank – Promontoria Holding 418 BV – indirectly belongs to the funds Cerberus Capital Management, LP, the European Bank for Reconstruction and Development and the International Finance Corporation (part of the World Bank Group), the Fund said.
VeloBank Sales
The sale of the bank marks the end of a nearly two-year long compulsory restructuring process. Getin Noble Bank and meeting commitments to the European Commission.
“The finalization of the sale of VeloBank concludes the most complex compulsory restructuring process in the history of BFG, and probably the entire EU. Thanks to the Fund’s activities, with the support of SOBK and under the supervision of the European Commission, managed to protect all GNB depositors and the stability of the Polish financial system without involving taxpayers’ money. This is an absolutely great success of all people directly involved in this process, both within the Fund and our advisors, for which they deserve words of appreciation. Our actions will now focus on recovering leasing receivables separated from VeloBank and receivables against GNB in bankruptcy, but we can say that the most difficult stage of compulsory restructuring is already behind us,” said BFG President Maciej Szczęsny, quoted in the release.
Share price
The purchase price of the shares is PLN 375 million, while the bank’s capital injection by the buyer amounts to PLN 687 million. This is the amount of capital injection necessary to obtain the required, safe and agreed upon capital ratios in the negotiation process, taking into account the current financial situation and the structure of the bank’s balance sheet, the material stated.
Compulsory restructuring of Getin Noble Bank
The process of forced labor restructuring of Getin Noble Bank began on September 30, 2022, after BFG made an irrevocable decision to transfer part of GNB’s activities to a bridge institution: VeloBank.
“The BFG decision to initiate resolution protected all GNB depositors and all of their deposits in the amount of PLN 38.1 billion (as of September 30, 2022). This process was carried out in cooperation with the Commercial Bank Protection System consisting of the eight largest commercial banks operating in Poland (Alior Bank, Bank Millennium, Bank Pekao SA, BNP Paribas Bank Polska, ING Bank Śląski, mBank, Powszechna Kasa Oszczędności Bank Polski, Santander Bank Polska). The entire resolution process, including the sale of VeloBank shares, was closely monitored by the European Commission, which issued the necessary consent for its implementation. The transaction of selling VeloBank shares fulfills Poland’s obligations agreed with European Commission” – BFG recalled in a press release.
VeloBank is no longer a bridge institution
After closing VeloBank transactions It ceases to be a bridge institution and is therefore no longer subject to any operating restrictions imposed by the European Commission, becoming a normal banking entity operating on our market, it was emphasized.
What is VeloBank?
VeloBank is a universal bank offering innovative financial solutions that make everyday life easier for individual clients, small and medium-sized companies, selected corporations, local governments and housing communities, also in the field of green energy transformation. As of September 2023, the bank’s balance sheet total reached PLN 46.5 billion.
Cerberus Capital Management is an alternative investment firm founded in 1992 with approximately $65 billion in assets across complementary strategies in credit, equity and real estate markets.
(ISBnews)
