Alpha Bank to Sell 10.8B Euro Portfolio to Davidson Kempner


Greeces Alpha Bank will sell a 10.8 billion euro 13.09 billion portfolio of impaired loans and 80 of loan services provider Cepal Holdings to U.S. fund Davidson Kempner under a definitive agreement it announced on Monday.

The sale of the portfolio, known as Galaxy, will be the secondlargest rated securitisation of nonperforming exposures NPEs in Europe after Monte dei Paschis Sienna project, it said.

The deal is expected to reduce Alpha Banks NPE and NPL ratios in Greece to 24 and 13 respectively from 43 and 29 in September 2020.

Reuters had exclusively reported that Alpha Bank had selected Davidson Kempner as its preferred bidder in November last year.

The deal involves Alpha selling 51 of the mezzanine and junior securitisation notes of the 10.8 billion euro NPE portfolio along with 80 of loan servicing subsidiary Cepal Holdings.

This is a turning point for our bank as we are making a decisive step in dealing conclusively with the legacy asset quality issues from the longlasting recession in Greece, Alpha CEO Vassilis Psaltis said in a statement.

In spite of the unprecedented conditions we experienced due to COVID19, we are proud to have managed to sign such a complex transaction in just eight months from launch, he said.

The deal puts Cepals enterprise value at 267 million euros, with Alpha having further upside through an earnout of up to 68 million linked to the achievement of certain targets, the bank said.

It said the mezzanine and junior securitisation…

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