Alpha Bank Project Galaxy ‘Transaction of the year’

“Transaction of the year” was the Galaxy securitization of Alpha Bank at the “NPL Securitisation Awards” of the internationally acclaimed Structured Credit Investor (SCI).

Project Galaxy, which was completed in the second quarter of 2021, was the second largest securitization with non-performing loans (NSA) rating in Europe and the largest securitization ever completed in Greece, amounting to 10.8 billion euros.

Project Galaxy was the second securitization of which the high repayment bonds are guaranteed under the “Hercules” Guarantee Program. In the context of the transaction, Alpha Bank maintained all the Senior securities (Euro 3.8 billion), as well as 5% of the medium (Mezzanine) and low (Junior) priority securities, amounting to € 7 billion 51% of medium and low priority securitization bonds were sold to a company managed and advised by Davidson Kempner, and 44% of the remaining bonds will be distributed to Alpha Services and Holdings shareholders.

Recognition of Alpha Bank’s ability to implement international agreements with a positive impact on the Greek economy

According to SCI analysts in the relevant announcement of the awards, the Galaxy transaction was a historic milestone for the Greek banking system in general, as its portfolio accounted for about 20% of the total reported loans of the banking sector. For Alpha Bank, the completion of the transaction was a strong guarantee that accelerated the implementation of its Transformation Plan, while contributing to the drastic consolidation of its balance sheet, as immediately after the transaction the MEA Index fell to 24% from 43%, while it was the basis for the formation of the same index in single digit percentage, which is expected to be achieved in the second quarter of 2022.

The highlight of the transaction was the sale of 80% of Cepal Holdings, a loan and credit claims management company and a subsidiary of the Alpha Bank Group, to a company managed by Davidson Kempner, with Alpha Bank retaining 20% ​​of the company’s share capital. “New CEPAL” together with the respective administrative rights in the latter.

Davidson Kempner is a strategic partner for Alpha Bank, while its investment, at the time of the completion of the Galaxy transaction, was a vote of confidence in the recovery of the Greek economy and one of the first signs of reviving investment interest for our country, after more than ten years crisis.

A milestone for the development of the Bank

For the Structured Credit Investor, the completion of such an important and complex transaction, with such good financial results, in an environment of uncertainty and in a very short period of time, is a very important achievement that Project Galaxy named “Transaction of the Year”.

After all, the completion of Project Galaxy was the cornerstone for the radical transformation of Alpha Bank’s balance sheet, but also the most important milestone that allowed it to enter a strong path of consolidation and growth.

“The Galaxy transaction, the second largest non-performing securitization in Europe, was a flagship project for the completion of which many teams of the Bank collaborated, showing absolute dedication and determination, despite the operational and other challenges imposed by the pandemic during that time. “, announced the success of Project Galaxy, which is underlined by the distinction of the ‘Structured Credit Investor’ version, confirms the meticulous design and the proven capabilities of Alpha Bank,” said Alpha Bank Group CEO Vassilis Psaltis for the award ceremony. to unceasingly implement its strategy, opening a virtuous cycle of development for the banking system and the Greek economy in general “.