The reaching of a definitive agreement for the sale of a portfolio of non-performing loans with a total book value of 1 billion euros to investment funds managed by Bracebridge Capital, National Bank announced.
After the completion of the transaction, doValue Greece, which is licensed and supervised by the Bank of Greece, will take over the management of the portfolio.
The announcement in detail:
National Bank (“NBC” or the “Bank”) announces that it has reached a definitive agreement with investment funds managed by Bracebridge Capital, LLC for the sale of 95% of mezzanine and junior notes in the context of a portfolio securitization of non-performing loans with a total book value of Euro €1.0bn. NGE will retain 100% of the senior bonds, for the security of which a guarantee request has been submitted by the Greek State pursuant to the provisions of Law 4649/2019 on the Guarantee Program for securitizations of credit institutions” Herakles II”, as well as 5% of the medium (Mezzanine) and low (Junior) repayment priority bonds. The transaction is carried out within the framework of the Bank’s strategy for the management of non-performing exposures and is in accordance with the objectives, as they have been submitted to the Single Supervisory Mechanism.
Total income for NBG, which mainly reflects the value of senior bonds and the price of mezzanine and junior bonds, amounts to ~45% of the total book value of the portfolio . The transaction, which has received two preliminary senior credit ratings, will boost the Bank’s total capital by ~25 basis points, with the capital adequacy ratio increasing to ~17.5% (pro-forma) in 1H of the year.
The transaction is expected to be completed within the second half of the year, subject to the required approvals. After the completion of the transaction, the management company doValue Greece, which is licensed and supervised by the Bank of Greece under Law 4354/2015 and has many years of experience in the management of non-performing loans, will take over the management of the portfolio.
On behalf of NBG, Morgan Stanley & Co. International plc acts as financial advisor and organizer of the transaction while the law firms Clifford Chance LLP and Karatzas & Associates act as assistant legal advisors in English and Greek law respectively.
Source: Capital
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