Toro Limited has invested approximately €31.25m in instruments backed by the performance of a granular non-performing loan portfolio of small and medium sized enterprise (SME) loans and secured residential loans.
This co-investment will be junior to any senior financing of the portfolio, and backed proportionately by loan exposures to 1654 SMEs and to 2283 secured residential loans originated by Bancaja, Bankia and Caja Madrid. The expected weighted average life (WAL) of the portfolio is 2.8 years. The portfolio is expected to be serviced by Copernicus, an independent servicing entity with a significant expertise with these asset classes.
Upon acquisition, the transaction represented approximately 8.5% of the Company’s net asset value. Following the above transaction and other cash flows the Company is now approximately 83% invested.
The expected return of the investment is in line with Toro’s target gross return for Private Asset-Backed Finance of approximately 15%.
Toro invests in non-performing Spanish debt