InvestCapital Ltd. based in Malta – a subsidiary of Kruk – concluded an agreement with BNP Paribas Personal Finance based in Paris regarding the acquisition by InvestCapital of a portfolio of short-duration unsecured retail receivables with a total nominal value of up to approx. EUR 120 million (PLN 520 million according to average exchange rate of the National Bank of Poland on December 20, 2023), Kruk reported.
The receivables will be purchased in the form of packages of future receivables flows sold by the bank every month for a period of two years, it was announced.
“France is one of the largest countries in Europe in terms of, among others, population, but also the size of NPLs – with almost 66 million inhabitants of this country, there are over EUR 12 billion of non-performing unsecured retail receivables in banks. This makes this country one of the more attractive markets in Europe for Kruk, but we want to verify it. We have drawn conclusions from our previous entries into new markets and we want to test the potential of France by first purchasing portfolios in cooperation with local entities,” commented Kruk CEO Piotr Krupa, quoted in the release.
“As always, we think long-term and the sustainable international development of Kruk is important to us. Today we focus on several markets including the growing potential Italian and Spanish markets. At the same time, now is a good time to check the potential of the new market with the initially limited capital and operational involvement of Kruk,” added the president.
He emphasized that Kruk has carried out a number of works and analyzes of the French market and believes that the best way to examine and learn about the realities of a given market is to be present there by purchasing a portfolio.
“We treat this stage as a continuation of reconnaissance work and for now we will not build an organization or plan M&A projects. Only after confirming the attractiveness of the market will we decide on further steps, and during our in-depth analysis, investments in France will be carried out on a small scale considering the size of the Group. We are in a comfortable situation that we do not need a new market to grow our business, but we are buying the option to test a country that may be one of the largest markets for Kruk in a few years,” Krupa pointed out.
In November, member of the management board (CFO) of Kruk, Michał Zasępa, informed that the Group is currently submitting offers on one “large European market” for the purchase of a receivables portfolio and does not exclude the possibility of finalizing the purchase this year. The goal is to form an opinion on the potential of this market for Kruk, explained the CFO.
Kruk is the largest receivables management company in Poland. The company has been listed on the Warsaw Stock Exchange since 2011; is included in the WIG20 index.