ABN AMRO Sells $1.3 billion in Bad Commercial Loans

ABN AMRO unit Antonveneta announced that it has sold part of its non-performing loan portfolio to GE Commercial Finance Services Italy and Pirelli RE. GE will hold the majority in the transaction, 65%, with Pirelli holding a 35% stake. The portfolio consists of mixed commercial loans with an approximate gross book value of EUR 1 bln ($1.32 billion), secured by Italian real estate assets.

The sale is a result of Antonveneta’s focus on aligning its credit risk management with that of ABN AMRO and is part of the 2006 synergies as presented during the investor day on Antonveneta on 11 December 2006 in Padua.  ANB AMRO acquired Italian bank Antonveneta in 2005.

An exclusive mandate has been signed with GE and Pirelli for an additional portion of non-performing loans (NPL), of which approximately EUR 3 bln ($3.95 billion) refers to NPLs and approximately EUR 2 bln ($2.6 billion) refers to a securitized NPL portfolio.

The loan sale is expected to close during 2007.