Greek lender Piraeus Bank is reportedly looking to offload a package of ship loans worth between EUR 500m and EUR 600m ($680m).
Hedge funds are expected to move for the portfolio, known as Nemo, Reuters cited financial sources as saying.
A source close to the deal said the book is made up of both non-performing and performing loans.
A sale is expected to close in the second quarter. Piraeus Bank has been contacted for comment.
Niche shipping lender Aegean Baltic Bank apart, the bank is one of four major Greek lenders relevant to the shipping industry, together with National Bank, Eurobank and Alpha Bank.
In November, Piraeus Bank said it had made significant non-performing exposure (NPE) reductions over the past year totalling EUR 5.2bn.
It added that it already had two new NPE sales projects in the pipeline worth EUR 1.7bn.
Hedge funds looking at distressed loans include York Capital Management and Cross Ocean Partners, sources told Reuters. Neither have commented.
Another fund, Och-Ziff Capital Management, was reported as one of the bidders for a EUR 2.7b distressed portfolio of shipping loans that was sold this month by Germany's Nord/LB.
Cerberus, one of the owners of Hamburg Commercial Bank, was said to be the buyer of this package.
