Lone Star and Credit Suisse buy €6.7bn RPI portfolio

The disposal of the special purpose vehicle's (SPV) assets by its shareholders took place in a bid to stop Belgium's national debt rising above GDP. In March, the country made €1.4bn of savings to prevent its budget deficit from sitting above the EU's limit of 3%, but its finance ministry announced that a further €1bn needed to be raised through asset sales.

Belgium will receive slightly more than €1bn from the sale of RPI's assets, a 37% increase on the state's original €740m commitment to the vehicle. The deal's price tag set the net asset value of the vehicle's securities at €2.3bn.

The SPV was set up in 2008 by the shareholders as a means of acquiring the distressed debt assets of Fortis Bank, the Belgian banking group which collapsed that year. The shareholders committed an aggregate amount of €1.7bn in equity, with Ageas contributing €760m for a 44.7% stake, the Belgian state €740m for 43.53% and BNP Paribas €200m for 11.77%.

Lone Star, a private equity firm based in Texas, US, specialises in acquiring distressed debt assets. Prior to its newest fund, the firm had launched 10 funds with a total committed capital of $33bn since 1995. LPs in its vehicles include corporate and public pension funds, sovereign wealth funds and university endowments.

The acquisition of RPI's asset portfolio will be made through the GP's Lone Star Fund VIII vehicle. The deal is expected to close before the end of May.

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• Topics
• Benelux
• Belgium
• BNP Paribas
• Credit Suisse
• Lone Star Funds