Piraeus Bank S.A. (“Piraeus” or the “Bank”) and Intrum AB (publ) (“Intrum”) have signed a binding commitment letter, according to which Intrum will pur-chase thirty percent (30%) of the mezzanine and junior notes of the c. €1.9bn residential mortgages NPE securitisation (“Project Phoenix” or the “Trans-action”). Subject to requisite corporate and regulatory approvals, the Bank is contemplating to distribute sixty-five percent (65%) of the mezzanine and jun-ior notes to its shareholders, while retaining five percent (5%) of said instru-ments itself.
Upon completion of the Bank’s corporate transformation underway (hive-down) the new licensed banking entity will retain one hundred percent (100%) of the senior notes and five percent (5%) of the mezzanine and junior notes. As announced in early August 2020, Piraeus has filed an application for the inclusion of the Project Phoenix senior notes, with a total nominal value of up to €1.0bn, in the Hellenic Asset Protection Scheme.The timely execution of Project Phoenix, part of the Bank’s NPE reduction plan, reaffirms Piraeus’s commitment to de-risk its balance sheet in an accel-erated manner and to the benefit of its shareholders.
The Transaction is subject to all necessary corporate and regulatory approv-als, as well as the consent of the Hellenic Financial Stability Fund.
Athens, 01 September 2020
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