UniCredit Readies $2.4 Billion Bad-Loan Sale Backed by State (1)

UniCredit SpA is preparing to sell non-performing loans with a face value of about 2 billion euros ($2.4 billion), accelerating a long-running clean-up ahead of its new strategic plan.

The portfolio includes secured and unsecured non-performing loans to individuals and companies, according to people with knowledge of the matter. The package will be split into senior, mezzanine and junior tranches, and UniCredit will request a state guarantee, known as GACS, for the less risky portion of the package, the people said, asking to not be named because the process is private. The bank plans to take the loans off its ...