Piraeus Financial S A : Agreement for the sale of shipping non performing exposures portfolio amounting to €0.4bn gross book value (Project Dory)
January 04, 2022 at 01:49 pm IST
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Piraeus Financial Holding announces that its subsidiary Piraeus Bank S.A. has reached an agreement with an entity affiliated with Davidson Kempner Capital Management LP, for the sale of a shipping non-performing exposures (NPE) portfolio amounting to €0.4bn gross book value (the "Transaction"). The agreed consideration will reach approximately 53% of the portfolio gross book value. The Transaction is subject to ordinary conditions precedent and the consent of the Hellenic Financial Stability Fund.
The Transaction is reducing the NPE ratio of Piraeus Financial Holding Group to circa 15% from 16% as at 30 September 2021 and increases its NPE coverage ratio to circa 40% from 39% previously.
The expected capital impact of the Transaction stands at around -20bps over the 30 September 2021 total capital ratio of Piraeus Financial Holdings. Taking into account the executed transactions of Mayfair project (announced on 20 December 2021) and Sunrise II NPE securitization (announced on 27 December 2021), the total capital ratio of Piraeus Financial Holdings is strengthened by more than 100bps over 30 September 2021 reported level, without taking into account the organic capital generation of Q4.2021 and the anticipated impact of the Thalis project (cards merchant acquiring business carve-out), expected to close in Q1 2022.
Athens, January 4th 2022
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Piraeus Bank SA published this content on 04 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 January 2022 08:18:01 UTC.
Piraeus Financial Holdings SA, formerly known as Piraeus Bank SA, is a Greece-based banking institute. It operates in the following main business segments: Retail Banking, Corporate Banking, Investment Banking, as well as Asset Management and Treasury. The Retail Banking segment includes the retail banking operations of the Bank and its subsidiaries, which are addressed to retail customers, as well as to small-medium companies, such as deposits, loans and letters of guarantee, among others. The Corporate Banking segment includes facilities related to corporate banking, provided by the Bank and its subsidiaries, addressed to maritime companies, such as syndicated loans, project financing and imports-exports, among others. The Investment Banking segment includes activities related to investment banking operations of the Bank and its subsidiaries, such as investment and advisory services, underwriting services and public listings, as well as stock exchange services, among others.