Alantra advises Piraeus on the first Greek synthetic SRT securitisation

Mar 2021

Securitisation – Sole arranger and financial advisor

Value €1.39 billion

Athens – Acting as sole 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 Bank S.A. (“Piraeus”) has signed a binding agreement with an institutional investor for a synthetic securitisation  with a €1.39bn reference portfolio of exposures to Greek SMEs (70.4%) and other corporates (29.6%). 

The Bank will enter into a financial guarantee with a Special Purpose Vehicle acting as the Protection Seller.  The Transaction is structured to comply with Article 270 of CRR as amended by EU Regulation 2017/2401 and to meet the criteria of a simple, transparent and standardised securitisation to the extent applicable.  Accordingly, the Protection Seller will place a deposit equal to the size of the protected tranche with the Bank, which it raises by issuing Credit Linked Notes to the Investor.

Subject to regulatory approval that the Transaction transfers significant risk (“SRT”) the Transaction will lead to a reduction of RWEAs of approx. €800m.

The Transaction is the first synthetic securitisation of Greek reference obligations.  Its successful execution marks a significant milestone for our client and the Greek securitisation market. 

Holger Beyer, Managing Director at Alantra, stated: “We are proud to have played our part in helping our client to take this SRT transaction from an idea in late 2020 to a Q1 2021 signing with a very positive outcome for the Bank’s capital and risk position and to become the first Greek bank to successfully use synthetic securitisation technology.”

Francesco Dissera, Head of Securitisation at Alantra, commented: ”This is an important transaction not only for our client, but also for Alantra, as it demonstrates our enhanced credentials and capabilities as a trusted and independent advisor for complex performing credit transactions, in particular for first time issuers.”