Piraeus Bank on Monday announced that it has entered into a binding agreement with APS Investments S.a.r.l. in relation to the sale and transfer of non-performing, denounced unsecured retail consumer and credit cards exposures equivalent to 2.238 billion euros total legal claims or 385 million euros on-balance sheet gross book value.
In an announcement, the bank said that the closing of the transaction is subject to customary conditions, including regulatory and other approvals by the respective authorities in Greece, including the consent of the Hellenic Financial Stability Fund.
The consideration of the transaction amounts to 5 pct of the 1.0 billon euros outstanding principal amount of the portfolio. The transaction is expected to generate circa 4 basis points of CET-1 capital ratio, as at 31st March 2018, while reducing the non performing exposure (NPE) ratio of the bank by circa 30 basis points. Following the completion of the transaction, Piraeus Bank will have no control over the servicing of the portfolio and will retain none of the risks and rewards associated with it.
“We announce today the agreement for Piraeus’ second NPE sale for 2018, shortly after our secured commercial portfolio transaction almost a month ago. Our effort to decrease the NPE stock has been intensified and we are very pleased with the fact that both recent deals have been positive to our Group’s P&L and accretive to our capital position”, Christos Megalou, the Group’s Chief Executive Officer, said.
“We at APS are delighted to seal another landmark project in the region. Greece is our fifteenth market to cover and we are dedicated to spending our time, expertise and resources on this great opportunity. We believe that Greece will become one of our top markets”, said Martin Manchon, a Managing Director and Head of APS.
Ernst & Young is acting as exclusive financial advisor of Piraeus for the Transaction. White & Case is acting as international legal counsel to Piraeus and Koutalidis Law Firm as Greek legal counsel to Piraeus for the T\transaction.