Through the GAIA I and GAIA II Securitizations, the Group’s NPL ratio is expected to decrease to less than 4%
Alpha Services and Participations S.A. (the “HoldCo”), parent company of Alpha Bank SA. (‘Alpha Bank’ or the ‘Bank’ and together with HoldCo the ‘Group’), announces that the Bank has entered into a binding agreement with a venture capital firm managed by affiliates of Davidson Kempner Capital Management LP (“Davidson Kempner”) regarding the sale of 95% of the mezzanine and junior bonds to be issued under the securitizations of two portfolios, consisting mainly of Non-Performing Exposures, with a total Gross Book Value of Euro 1.1 billion. (the “GAIA I and GAIA II Securitizations”).
The Bank will retain 100% of high bonds (senior) repayment priority, benefiting from the provisions of the “Heracles” Credit Institutions Securitization Guarantee Program, as well as 5% of medium and low repayment priority bonds. The company Cepal Hellas Financial Services Sole Proprietorship Company for the Management of Claims from Loans and Credits will be the manager of the loan portfolios of the GAIA I and GAIA II Securitizations.
In addition, the Bank has already submitted applications for inclusion of the GAIA I and GAIA II Securitizations in the “Heracles” Credit Institutions Securitization Program of the Law 4649/2019, as amended by n. 5072/2023 and is valid.
The Group’s total revenues from sale of 95% of bonds medium and low seniority of the GAIA I and GAIA II Securitizations (the “Transaction”), together with the value of the high seniority bonds, represent approximately 50% of the gross book value of the portfolios.
Furthermore, through the GAIA I and GAIA II Securitizations, the Group’s NPL ratio is expected to decrease to less than 4%. The Transaction is expected to be capital adequacy neutral.
The completion of the GAIA I and GAIA II Securitizations, which is expected to take place within the first and second quarters of 2025 respectively, is subject to the fulfillment of certain conditions, including the issuance of the Ministerial Decision regarding the provision of the Program guarantee of Guaranteeing Securitizations of “Herakles” Credit Institutions for the bonds with high repayment priority and the supervisory approval for the Significant Risk Transfer (SRT) of the underlying loans from the Single Supervisory Mechanism (SSM).
Source: Skai
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