Debitos arranges multi-million deal for KA Finanz
Frankfurt, September 25 2018 –
The online credit marketplace Debitos GmbH arranged the expedited sale of a performing infrastructure loan maturing in 2022 with a face value of EUR 17.4M on behalf of KA Finanz AG, achieving a purchase price that exceeded the seller’s initial expectations. KA Finanz is the wind-down entity and legal successor of the former Kommunalkredit and is fully owned and guaranteed by the Republic of Austria. The company is responsible for the structured reduction of the strategic portfolio.
“For KA Finanz, the relationship with the Debitos platform is new territory. But KA Finanz demonstrated that even established financial institutions can successfully implement new methods. With the mutual cooperation and achieved result, all business partners are fully satisfied,“ says Timur Peters, Founder and CEO of Debitos. “This is a template for future sales by other financial institutions, as well,” Peters continues.
„This mandate was extremely important to Debitos. Of course, we are very proud that we were also able to prove in this new asset class how effective our service is, especially in cross-border sales processes,“ explained Timur Peters from Debitos.
The transaction was introduced to Debitos by TRACE CAPITAL Advisors Ltd., a boutique advisory geographically focused on Central and Eastern Europe and South Eastern Europe. TRACE CAPITAL recently agreed a cooperation with Debitos.
Robert Bruckner, Founder and Director of TRACE CAPITAL, adds “The sale of the KA Finanz loan on such favourable terms and through such a seamless process marks our successful relationship with both KA Finanz and our partner, Debitos. Through Debitos, we provide sellers with access to the leading European FinTech platform for the sale of illiquid exposures.”
Debitos is an online marketplace which enables companies, banks and funds to sell their credit exposures on the market through its open and transparent auction-based online transaction platform. The platform leverages on the digitalization of the entire sale process and can reduce the expected disposal timing to 3-8 weeks compared to 3-6 months of the traditional process. Debitos was founded in Frankfurt in 2010 and has since concluded more than 260 online transactions with a total gross book value in excess of €4bn. By now more than 550 investors from all over the world have registered with Debitos.
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