VENICE, Italy, Sept 16 Mediobanca, JP Morgan and
Citi are arranging a bridge loan needed for a 28 billion euro
($31 billion) bad loan sale which is part of an emergency rescue
plan at Monte dei Paschi di Siena, the chief executive
of Quaestio Asset Management said.
Quaestio runs Atlante, the bank rescue fund that has agreed
to buy the so-called mezzanine tranche in Monte dei Paschi's bad
loan securitisation -- a transaction in which loans are
repackaged as debt securities.
The senior tranche in the deal will be initially financed by
a bridge loan until the notes - which carry a state guarantee
that takes some time to arrange - are sold to investors. The
loan will allow the securitisation vehicle to buy the loans from
Monte dei Paschi before that.
"Mediobanca, JPMorgan and Citi are arranging the bridge
loan," Quaestio CEO Paolo Petrignani told reporters on the
sidelines of Banca Ifis' annual NPL conference in Venice.
($1 = 0.8937 euros)
(Reporting by Valentina Za; editing by Francesca Landini)