Citadele today announced the acquisition of the majority of ABLV Bank, AS in liquidation, mortgage portfolio. The portfolio consists of several thousand mortgage loans with a total exposure above EUR 170 million.
Given the size of the deal, the planned completion date is in the second half of this year, and all customers affected will be contacted in advance with the relevant information including how repayments should be made.
The agreement stipulates that customer loan agreements with ABLV Bank, AS in liquidation (further – ABLV Bank), will maintain their current terms until the end of the contract.
“We are a Baltic bank with local footprint, and our aim is to offer the most up-to-date financial services with a unique service approach. The acquisition of this high-quality portfolio is another step in our growth journey and our commitment to support the local customers. We will be pleased to offer our new customers access to our full range of financial services and products with special terms and conditions,” explains Johan Åkerblom, Chairman of the Management Board, Citadele Bank.
“One of our main aims has been to recoup the loans in order to collect the funds we need to satisfy claims of creditors. We are therefore pleased that one of our most valuable assets—a significant portion of our mortgage portfolio—as well as future customer service will be taken over by Citadele Bank, who also disbursed state-guaranteed compensation to ABLV’s former customers,” emphasises Andris Kovaļčuks, Liquidator, ABLV Bank, AS in liguidation.
Current loan customers of ABLV Bank do not have to change anything in their activities, and they will be provided with more specific instructions as soon as the transaction is finalised in the second half of 2021.
Superia acted as sole financial adviser to the seller.