Alantra advises Oxalis in the first rated NPL securitisation in Cyprus

Dec 2021

Securitisation - Public Rated Senior NPLs ABS

Value €2.2 billion

London – Alantra, the global investment banking and asset management specialist, is pleased to announce that it has advised Oxalis, a fund managed by one of the largest fixed income asset managers (Pimco), on the securitisation of a c.€2.2 billion portfolio composed mainly of residential non-performing exposures (Project Hera). The securitisation follows Oxalis’s acquisition of the underlying NPL portfolio from Bank of Cyprus, the largest financial institution in Cyprus, also advised by Alantra. 

This transaction envisaged a double SPV structure with a domestic SPE and an off-shore SPV. Hestia, a Luxembourg SPV, issued €475 million in Senior notes and €1,725 million in Junior notes. Oxalis will retain 100% of the Junior notes complying with the risk retention requirements. Additionally, Class A notes have been rated by DBRS and Scope with BBB(low)(sf) and BBB(sf), respectively.

Upon completion, Oxalis managed to refinance the acquisition of the securitised portfolio at a lower funding cost with longer maturity and no recourse.

Alantra acted as co-lead arranger of Project Hera, given its extensive and unique knowledge of the Cypriot credit market. 

Project Hera represents the first rated NPL public securitisation executed in Cyprus.

Nicholas Colman, Managing Partner at Alantra, commented: “The Managing Partners of Alantra CPAI are delighted with the closing of Project Hera. This is an example of where Alantra supported Oxalis from the inception of the transaction – supporting our client to acquire the portfolio via a competitive process, advice on the carve-out of a new independent servicer (including migration) and the portfolio’s subsequent securitisation. This is a great example of the unique end-to-end service we are providing in EMEA on strategic portfolio transactions backed by non-core assets.”

“We are proud of Oxalis’s continued trust in Alantra and our appointment to co-arrange their debut securitisation, following our advice on the acquisition of the underlying portfolio. The successful securitisation of the Hera portfolio demonstrates Alantra’s unique knowledge of the Cypriot NPL landscape,” said Francesco Dissera, Managing Director at Alantra.