LAST UPDATE: 18:05
Eurobank Ergasias Services and Holdings Societe Anonyme announces that its subsidiary Eurobank Bank has completed the first synthetic securitization with significant risk transfer, through the disposal of the middle portfolio securitization portfolio of € 1.0 billion large and small enterprises to inform to Magnetar Capital (Wave I transaction).
The transaction results in the easing of the Bank’s weighted capital by approximately 0.6 billion euros, contributing approximately 21 points to its total regulatory capital ratio.
The transaction marks the integration of synthetic securitization, as an important and effective tool, into Eurobank’s future management of its regulatory capital initiatives, which will enable the Bank to further support future financing to the real economy of the country.
Citigroup Global Markets AG acted as a Settlement Advisor and Clifford Chance LLP as the Bank’s legal advisor for the transaction.
At the same time, Eurobank Holdings announces that its subsidiary Eurobank and the European Central Bank Group (the European Central Bank and the European Investment Fund), have signed a guarantee on the first part of a synthetic securitization loss portfolio of € 0.7 billion. Bank to small and medium-sized enterprises (Wave II transaction).
This is the first synthetic securitization in the form of a guarantee on the first portion of portfolio losses in Greece under the European Guarantee Fund (EGF). The European Guarantee Fund (EGF) is a € 25 billion fund set up in 2019 by the European Central Bank Group to respond to the effects of the pandemic. The fund promotes the allocation of funds from Member States to support the lending of new capital to small and medium-sized enterprises.
The transaction results in a lightening of weighted capital by approximately € 0.5 billion, contributing approximately 21 points to the overall Eurobank regulatory capital ratio.
Citigroup Global Markets AG acted as a Settlement Advisor and Clifford Chance LLP as the Bank’s legal advisor for the transaction.
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Source From: Capital
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