Greece: Alpha Bank sells €1bil SME secured + €51mil REOs & €1.3bil consumer unsecured NPL portfolios

On November 29th Alpha Bank announced that it has entered into two binding agreements, one of which with a consortium of funds managed by affiliates of Apollo Global Management and IFC for the disposal of project Jupiter and another with Hoist Finance AB for the disposal of project Mercury.

Project Jupiter is a mixed asset pool comprised of: (i) NPLs to Greek SMEs mainly secured by RE assets and (ii) REOs in Greece with a total gross book value (GBV) of approximately €1.0bil and €56mil respectively. The sale price agreed with Apollo & IFC is €337.1 mil (33.6% of total GBV) for the NPL portfolio and €51mil for the REOs. The NPL Portfolio transaction is expected to be concluded by the end of December 2018, while the completion of the REO portfolio transaction is expected to take place within 2019.

Project Mercury is a retail unsecured NPL portfolio of a total claim (TC) of € 2.1bil (€1,3bil total outstanding principal). The agreed price is €76mil (3,61% of TC) and the servicing of the Portfolio has been undertaken by Cepal Hellas. The transaction is expected to be concluded within 2018.

According to the announcements of Alpha Bank, both transactions are expected to have a positive impact in terms of financial results, capital and liquidity.