Completion of the "Sunrise II" NPE Transaction
Following relevant previous announcements, Piraeus Financial Holdings S.A. would like to inform the investment community that the NPE securitization transaction of its subsidiary Piraeus Bank S.A. entitled "Sunrise II", corresponding to a total gross book value of €2.7 billion as at the reference cut-off date of the perimeter, has now been completed after receiving all necessary approvals.
Piraeus Financial Holdings S.A. has transferred forty-four percent (44%) of the mezzanine notes of the securitization to Intrum AB (publ) and seven percent (7%) to Serengeti Opportunities Partners LP, notes that have been acquired by Piraeus Financial Holdings through an intra-group transaction.
Piraeus Bank will hold five percent (5%) of the mezzanine and junior notes of the Sunrise II securitization, in accordance with the regulatory framework for securitizations. In addition, Piraeus Bank will hold one hundred percent (100%) of the senior notes of the securitization.
Piraeus Financial Holdings is considering the possibility of distributing part or all of the remaining percentage of the notes to its shareholders, subject to receiving the required corporate and regulatory approvals.
The capital enhancement stemming from this transaction stands at +50 basis points over the total capital adequacy ratio of September 2021 as a consequence of risk-weighted assets relief, and +120 basis points cumulatively incorporating the impact of the Mayfair transaction that was announced by Piraeus Financial Holdings on 20 December 2021.