Alantra advises Piraeus on the signing of a binding agreement with Intrum for the Vega NPE portfolio

Mar 2021

Securitisation – Co-arranger and financial advisor

Value €4.9 billion

Athens – Acting as co-arranger and financial advisor to the deal, Alantra, a leading global investment bank and asset management firm, is pleased to announce that its client, Piraeus Financial Holdings S.A. (“Piraeus”) has signed a binding agreement with Intrum AB (“Intrum”) for the sale of 30% of the mezzanine notes of the Vega securitisation.

Piraeus is proceeding with the implementation of the Vega non-performing loan securitisations transaction, comprising predominantly denounced loans, secured by residential and commercial real estate. The Vega portfolio consists of three special purpose vehicles, with a total gross book value of c.€4.9bn.

In February 2021, Piraeus Bank submitted an application for the inclusion of the Vega securitisations in the “Hercules” Asset Protection Scheme. The application relates to the provision of a guarantee by the Greek State on the senior notes of c.€1.4bn. The implied valuation of the Vega portfolio based on the anticipated fair value of the senior notes and the sale price of the mezzanine notes corresponds to c.31% of the total gross book value of the Vega portfolio.

Pro-forma for the Vega and Phoenix transactions (the latter already signed as well), Piraeus Bank’s NPE ratio is reduced to c.36% from 47%, while the NPE coverage ratio improves to c.47% from 45% in September 2020.

Conditional upon requisite supervisory and corporate approvals, Piraeus Financial Holdings is contemplating to distribute 65% of the mezzanine notes of the Vega securitisation to its shareholders, while Piraeus Bank will retain 5% of the said instruments as per the respective securitisation requirements. Piraeus Bank will retain also 100% of the senior notes. Subject to the required approvals, the loans within the Vega securitisation perimeter are expected to be derecognized from Piraeus Financial Holdings consolidated statement of financial position within H1 2021. Vasilis Kosmas, Partner of Alantra, stated: “This transaction is Piraeus’ second large-scale NPE securitisation, which comes after Phoenix NPE securitisation, in which we also acted as advisors and marks an additional significant step for the clean-up of the Bank’s balance sheet and the implementation of its strategic plan. We are pleased with the transaction and with the trust that our client has placed in us to assist them in this series of transactions”

The Transaction is subject to all customary approvals, including the consent of the Hellenic Financial Stability Fund.