Piraeus Bank – Sale of 400 million euros of non-performing shipping loans to Davidson Kempner

At a price of 53% on its book value, Piraeus Bank reached an agreement with Davidson Kempner for the sale of a portfolio of non-performing maritime exposures (NPAs).

These are loans amounting to 400 million euros, for which Piraeus Bank will receive 212 million euros and will reduce the MEA index to 15% from 16% on 30/9/2021.

At the same time, it increases the coverage ratio of red loans on the balance sheet to about 40% from 39% previously.

The expected capital effect from the transaction is around – 20 base points on the total capital adequacy ratio of Piraeus Financial Holdings on September 30, 2021.

Taking into account the signed transactions Mayfair (announced on 20/12) and Sunrise II (27/12), the total capital adequacy ratio of the bank will be strengthened by more than 100 base points in relation to the index at the end of the third quarter of last year.

This does not include the organic capital production of the 4th quarter of 2021 and the expected impact of the Thalis transaction (separation of the activity of card acceptance services), which is expected to be completed within the 1st Quarter of 2022.