A deal could be finalised in the next few weeks, Intesa Sanpaolo CEO Carlo Messina told Reuters.
KKR reached an agreement with the two lenders to pool their bad loans in April.
The banks are expected to launch a special vehicle to manage some restructuring loans owed by the same businesses, hoping that this will make those debts more recoverable or make them easier to sell to third parties, said the report.
In February this year UniCredit sold a €700m portfolio of non-performing loans to private equity firm Anacap Financial Partners.
The deal came only a few weeks after Anacap bought a €551m portfolio of performing salary secured loans from Gruppo Monte dei Paschi di Siena in Italy.
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