Alantra advises Eurobank S.A. on a €5.2bn NPL Securitisation

Oct 2021

Securitisation - Arranger and financial lead advisor

Value €5.2 billion

Athens – Alantra, the global investment banking and asset management specialist, is pleased to announce that it has acted as arranger and financial lead advisor to Eurobank Holdings (“Eurobank”), on the signing of a new public NPL securitisation in the Greek market, Project Mexico.

Project Mexico has a nominal value of €5.2bn and comprises non-performing multi-asset loans, both retail and corporate exposures at varying stages of restructuring and enforcement processes. Mexico SPV issued three classes of Notes’ notional amounts as per the following: Senior Note €1,550 million, Mezzanine Note €200 million and Junior Note €3,402 million. Eurobank will retain 100% of Senior Notes and 5% of Mezzanine and Junior Notes to comply with risk retention requirements.

Additionally, 95% of Mezzanine and Junior Securitisation Notes were sold to doValue S.p.A., the leading NPL servicer in Italy, which will continue servicing the portfolio. DoValue is also servicing Eurobank’s former securitisation, Cairo, along with the remaining c.€2.50bn performing and non-performing exposures that are still retained by Eurobank.

This securitisation will also be enrolled to the Hellenic Asset Protection Scheme (“Hercules”), the Greek government guarantee scheme, for the amount of €1,550 million.

With this agreement, Eurobank enters the final stages toward the completion of its accelerated plan announced in November 2019 for the clean-up of its balance sheet and becomes the first Greek bank to turn the corner on the major legacy issue of the NPE stock. The transaction will have no material impact on the regulatory capital ratios of Eurobank and, post-closing, its NPE ratio is expected to stand at 7.3%.

The transaction is expected to be completed by December 31, 2021 subject to the fulfillment of certain conditions, including the issuance of the Ministerial Decision on the inclusion of the Mexico securitisation in the Hercules Asset Protection Scheme (“Hercules II”) under l.4649/2019 and the regulatory approval by the Single Supervisory Mechanism (SSM) for the risk transfer of the underlying loans.

Vasilis Kosmas, Partner at Alantra, commented: “We are proud to have played our part in helping our client sign another NPL securitisation on the Greek market, which demonstrates Alantra’s credentials and capabilities as a trusted and independent advisor for complex performing credit transactions.”