Alpha Bank on Thursday announced that it has entered into a binding agreement with a consortium comprised of funds managed by affiliates of Apollo Global Management, LLC, and IFC (International Finance Corporation), a member of the World Bank Group, for the disposal of a mixed pool of Non-Performing Loans to Greek SMEs mainly secured by real estate assets and, together with the wholly-owned Group Company Alpha Leasing S.A, of repossessed real estate assets in Greece, with a total on-balance sheet gross book value of approximately 1.0 billion euros and 56 million euros respectively, as of 30.9.2018.
In an announcement, Alpha Bank said the consideration for the sale of the NPL Portfolio has been agreed at 337.1 million euros or 33.6 pct approximately of the total GBV, while the consideration for the Repossessed REO Portfolio has been agreed at 51 million. The transaction is expected to have a positive impact for the Bank in terms of capital and liquidity and is fully consistent with the Bank’s Business Plan to reduce Non-Performing Exposures and to continue the restoration of its balance sheet. The transitional servicing of the NPL Portfolio has been undertaken by ?Cepal Hellas Financial Services S.A.?, a servicing company which has been licensed under Law 4354/2015 and is regulated by the Bank of Greece. The completion of the NPL Portfolio transaction is expected to take place until 31.12.2018, while the completion of the REO Portfolio transaction is expected to take place within 2019. Citigroup Global Markets Ltd is acting as the Bank’s sole financial adviser in relation to the sale process, while White & Case LLP is acting as international legal adviser and Koutalidis Law Firm as legal adviser to the Bank on Greek law issues.