National Bank sells secured NPLs worth 900 million euros

National Bank of Greece on Monday announced that it has entered into a definite agreement with a consortium of funds advised by affiliates of Centerbridge Partners, LLP and funds advised by Elliott Advisors (UK) Limited for the disposal of a portfolio of 12,800 secured non-performing small Business Lending and Small & Medium Enterprises loans .(8,300 properties distributed across Greece) with total principal amount of around. 0.9 billion euros. The transaction is being implemented in the context of NBG’s NPE Strategy and Operational Targets as submitted to the Single Supervisory Mechanism.

In an announcement, the Greek bank said that after closing of the transaction, the consortium is expected to assign the servicing of the portfolio to Cepal Hellas Financial Services S.A., which has been licensed by the Bank of Greece under Law 4354/2015.

The consideration of the transaction is equivalent to around 28% of the principal amount of the portfolio and is capital accretive to NBG (based on Q1 2019 CET 1 ratio).

Morgan Stanley & Co. International plc is acting as financial advisor while Karatzas & Partners and Milbank LLP as local and international external legal counsel respectively to NBG.