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DDM Holding AG
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DDM completes a landmark transaction in Slovenia and issues new bond of EUR 11 million
DDM Holding AG (First North: DDM), a specialist investor in and manager of non-performing loans and distressed assets, announces the acquisition of a portfolio of non-performing banking claims originated by one of the banking and financial groups in South-Eastern Europe with its business operations also in Slovenia.
The total investment amounts to approximately EUR 17 million. The gross collection value amounts to over EUR 94 million. The Estimated Remaining Gross Collections (”ERC”) amount to over EUR 34 million in 120 months, adding to DDM’s EUR 70.9 million ERC as reported per the end of the first quarter 2016.
The transaction is funded by a combination of the recently raised equity of approx. EUR 7 million and new debt of approx. EUR 11 million. The new bond at 13% interest matures in 12 months and will be repaid during the period.
Gustav Hultgren, CEO of DDM, said: “This is a landmark transaction for DDM as this is the largest portfolio acquired by DDM where we retain 100% of the economic upside. We are also pleased to continue our investments into Slovenian portfolios and with this large acquisition we have established a solid foothold on the important Slovenian market. We have gained a strong reputation with the sellers and have built a strong network of local partners and experts who have solid experience and track records. DDM continues to see a growing pipeline of prospective investment opportunities and is looking to further increase its exposure in Slovenia as well as other CEE markets.
We are also pleased to have successfully issued our first Euro denominated bond which matches the currency denomination of the assets in Slovenia.”
Carnegie Investment Bank acted as financial advisor in conjunction with the bond issue.
This information is information which DDM Holding AG is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08:00 a.m. CET on 20 July 2016.