The National Bank, following a relevant announcement of October 15, 2021, informed the investing public on Monday morning with the announcement of the completion of the “Frontier” transaction, after receiving all the necessary approvals, including the provision of a guarantee by the Greek State on of high repayment bonds for the Guarantee Program in securitizations of “Iraklis” credit institutions.
The transaction concerns the securitization of a portfolio of non-performing exposures with a total book value of ~ € 6bn. The “Frontier” transaction is a milestone and contributes significantly to the consolidation of the EIB’s balance sheet in view of achieving a single-digit index of non-performing exposures immediately.
Specifically, the transaction (a) received two credit ratings, (b) did not require a spin-off of the EIB banking sector by setting up a new company (hive down) and (c) will be serviced by a management company that is not a spin-off product of the NBG.
In terms of capital support, the transaction is unique in the domestic market, enhancing the EIB’s capital adequacy by 1.5 percentage points.
The EIB holds 100% of the Senior High Priority Bonds, as well as 5% of the Medium (Junior) and Low (Junior) High Priority Bonds, while 95% of the Medium (Mezzanine) and Low (Junior) Bonds. is available to the consortium consisting of subsidiaries of the investment companies Bain Capital Credit and Fortress Investment Group as well as doValue Greece. On behalf of the EIB, Morgan Stanley & Co. International plc acted as financial advisor and organizer of the transaction, the law firms Clifford Chance LLP and Karatzas & Associates as assistant legal advisers in English and Greek law respectively, Oliver Wyman as financial and technical advisor while Cerve supported the Bank portfolio.
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Source From: Capital
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