Alpha Bank and Davidson Kempner signed a binding agreement for the Cosmos transaction, through which it will de-recognize red loans (NPE) amounting to 3.4 billion euros, while submitting an application for the inclusion of the securitization in the state guarantees scheme “Herakles ΙΙ ».
As announced on Friday morning, the transaction is expected to be completed in the fourth quarter of 2021, contributing significantly to the implementation of the consolidation program of the systemic group.
In particular, together with the forthcoming sales of non-performing loan packages of Orbit in Greece and Sky in Cyprus, totaling 3.50 billion euros, Alpha Bank in the results of the year 2021 will reduce in real terms the NPE to the level of 5 billion euro from 21 billion euros a year earlier and the relevant group index to 13% from 43% respectively.
The Cosmos transaction
The package includes 50% mortgage loans, 21% small business loans, 18% large business loans and 11% consumer loans.
The agreement with the companies managed and consulted by Davidson Kempner, provides for the sale of 51% of the medium (Mezzanine) and low (Junior) bonds of the securitization priority.
The Bank will hold 100% of the Senior repayment bonds, with a total value of 1.7 billion euros, which will be included in “Herakles”, as well as 5% of the medium (Mezzanine) and low (Junior) repayment bonds. priority.
It is recalled that Alpha Bank is already cooperating with the American company, as after the completion of the Galaxy transaction, the latter has acquired control of its former subsidiary of the Greek bank, Cepal Hellas and the exclusive management of its red loans
Bank revenues
The total income of the systemic group from the sale of 51% of the medium and low repayment bonds of Cosmos, together with the value of the high repayment bonds, correspond to approximately 50% of the gross book value of the loan portfolio.
In terms of total capital adequacy, the transaction is expected to be neutral. This is because the additional burden on the results of 0.3 billion euros, which moves within the framework of the targets set by the Group for non-performing loan transactions, is offset by a corresponding reduction in weighted assets.
The completion of the Cosmos Transaction is expected to take place within the fourth quarter of 2021, subject to the fulfillment of certain conditions.
These include the issuance of a ministerial decision for the provision of the guarantee through “Herakles” for the bonds of high (Senior) repayment priority and the supervisory approval for the significant risk transfer (“SRT”) of the underlying loan portfolio by the Single Supervisory Mechanism («SSM»).
The systemic group will then contribute 44% of the Mezzanine and Junior bonds of the Galaxy and Cosmos securities to a subsidiary that will establish and distribute in kind the latter’s shares to its shareholders.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
Vardis Vardinogiannis: ‘On a Ship’s Bridge You Always Look Forward’
Ten milestones in the half century since the creation of Motor Oil Group, as described by Vardis Vardinogiannis, who passed away on Tuesday at the age of 91
DBRS Says Greek Banks ‘Shielded’ from ECB Rate Cuts
The agency explains that fund disbursements through the banking sector will help offset pressures anticipated on interest margins beginning in 2025, due to expected rate cuts by the European Central Bank (ECB).
Meta Cuts Facebook and Instagram Subscription Fees by 40%
The social media giant also revealed that it will continue to offer free access to Facebook and Instagram for EU users, provided they agree to see ads based on a limited set of user data.
Skyrocketing Use of Debit, Credit Cards
The total value of the transactions conducted with debit and credit cards in the country in the first half of 2024 rose 2% on the corresponding period of 2023
JP Morgan Revised Greece Outlook to ‘Overweight’
The investment bank notes that Greece is showing the strongest GDP growth in the Eurozone. Additionally, efforts to clear up bank balance sheets are anticipated to yield increased capital returns.
Vardis I. Vardinogiannis, Greek Tycoon and Shipping Magnate, Dies at 91
In 1990, Vardinogiannis was targeted in an attack which involved three rockets fired at his vehicle by the terrorist organization 17 November.
Kudos for Greek Sheep’s Milk Cheeses
Graviera is the Greek version of the Swiss gruyère, and is generally considered the second most popular cheese made in the country after feta
EIB Survey: Greeks Rank Climate Change as Top Concern After Cost of Living
Specifically, 98% of the Greeks surveyed stated that the country must to adapt to climate change, with 60% saying that priority should be given to these adjustment measures
Trump Tells Putin not to Escalate Ukraine War during Phone Convo
Meanwhile, President Joe Biden, is preparing to lobby Trump against abandoning U.S. support for Kyiv
Former Thessaloniki Mayor Yiannis Boutaris Dies at 82
Boutaris entered politics in 2010, serving as the 60th mayor of Thessaloniki for two consecutive terms until 2019, becoming a transformative figure with his progressive policies.
