Project Phoenix – Alantra advises Piraeus Bank S.A. on the signing of its first NPE Securitisation

Sep 2020

Financial advisor – Securitisation - Residential NPL

Value €1.9 billion

Athens – Acting as financial advisor to the deal, Alantra, a leading global investment bank and asset management firm, is pleased to announce that its client, Piraeus Bank S.A. (“Piraeus” or “the Bank”), and Intrum AB (publ) (“Intrum”) have signed a binding commitment letter for a c. €1.9bn residential mortgages NPE securitisation (“Project Phoenix” or the “Transaction”).

This is the first securitisation to date for Piraeus and has already filed, as announced in August 2020, an application for the inclusion of the senior notes in the Hellenic Asset Protection Scheme (“Hercules”), with a total nominal value of up to €1.0bn.

• The key components of Phoenix transaction are the following:
• The Bank will retain 100% of the senior note and 5% of the mezzanine and junior notes
• Intrum will purchase thirty percent (30%) of the mezzanine and junior notes of the securitisation

Subject to requisite corporate and regulatory approvals, the Bank is contemplating to distribute sixty-five percent (65%) of the mezzanine and junior notes to its shareholders.

It is not the first time that Intrum and Piraeus reach an agreement, on 16 September 2019, Intrum and Piraeus established a new servicer company, 80% owned by Intrum, with Piraeus Bank retaining a 20% equity stake. The new servicer is licensed and regulated by the Bank of Greece. It services the Piraeus Bank’s existing Non Performing Exposures (“NPE”) and Real Estate Owned Assets (“REO”) portfolio, together with any new inflows, on an exclusive basis, and is able to manage also other NPE and REO portfolios in the Greek market. Assets and proceeds of the serviced portfolio remained on the balance sheet of the Bank.

Upon completion of the Bank’s corporate transformation underway (hive-down) the new licensed banking entity will retain one hundred percent (100%) of the senior notes and five percent (5%) of the mezzanine and junior notes.

The Transaction is subject to all necessary corporate and regulatory approvals, as well as the consent of the Hellenic Financial Stability Fund.