National Bank announced the agreement to sell a portfolio of non-performing loans with an accounting value of 1 billion euros to Bracebridge Capital.
This is the second securitization called Frontier II, which is expected to be completed in the second half of the year.
As the managing director of National Bank Mr. Pavlos Mylonas stated at the general meeting of shareholders, after the securitizations the stock of bad loans after the provisions falls to just 500 million euros.
The red loans will then be managed by the management company doValue, which has many years of experience in this field.
Ethniki is selling 95% of the mezzanine and junior bonds as part of the securitization of a portfolio of non-performing loans with a total book value of 1 billion euros. NGE will hold 100% of the senior bonds for which a request has been submitted for coverage by a State guarantee, in accordance with the Heracles program.
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.
The 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 the first half of the year .
Source: Capital
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