Piraeus Financial Holdings announces that it has entered into a binding agreement with global investor Christofferson, Robb & Company (CRC) for a synthetic (virtual) securitization of performing SME and corporate loans.
Piraeus Bank will purchase credit protection on a partitioned portfolio with an aggregate gross book value of c.€1.4bn under a financial guarantee, corresponding to c.€0.8bn risk weighted assets. The portfolio loans will remain on the balance-sheet of the Bank.
The transaction was signed on 11 March 2021.
As a result of the transaction, the Bank will reduce its RWAs by c.€0.8bn and thus release c.€0.1bn of regulatory capital.
The transaction is subject to all customary approvals and completion is expected in Q2.2021.
The transaction is an inaugural one for the Greek market. Piraeus Bank plans to execute a second transaction in late 2021, with a target to release a further c.€1.2bn RWAs.
Piraeus Bank is advised on the transaction by Alantra, Clifford Chance and Zepos & Yannopoulos. CRC is advised on the transaction by Simmons & Simmons and Souriadakis Tsibris.
Athens, March 16, 2021