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npl-reo Market News: Spanish Real Estate Intelligence

All 4 Greek systemic banks to enter Hercules securitisation scheme in 2020
The Greek banks are expected to transfer to Hercules NPLs worth €30 bn. The course of the Greek Asset Protection Scheme has dominated the discussions between the Greek government and the mission chiefs of the country’s creditors. Even though Hercules is not a prerequisite for the next evaluation, the interest of the creditors for its course is intense, especially after the pandemic breakthrough. The Greek banks are expected to reduce their non-performing loans by €60.9 bn, at a time when the recession due to the pandemic is estimated to create another  €7-10 bn NPLs. As the government told the creditors, the securitisation process has been moving fast; Eurobank completed, in the middle of the pandemic, the transfer of the third securitisation of the Cairo NPL portfolio, totalling €7.5 bn. The Galaxy securitisation amounting to €10.5 bn by Alpha Bank comes next, and securitisations by Piraeus Bank and NBG will follow. Alpha Bank's Galaxy securitisation completed its non-binding bidding phase last week, with Bain Capital, PIMCO, Cerved Group and the Elliot-Credito Fondiario partnership being some of the bidders for both the securitisation and the acquisition of Cepal. The bank now expects the completion of the evaluation by DBRS, in order to proceed with the application for entering Hercules. The submission of binding bids for the Galaxy project could take place even before the end of September. The surprise comes from NBG, which did not plan to enter Hercules before 2021. The Bank will start the approach of investors for the securitisation of Frontier (€6 bn), at the second half of 2020. With this securitisation, the bank's NPE ratio will fall below 15%. Piraeus Bank already proceeds with two securitisations, totalling €7 bn. The Vega securitisation (€5 bn), for which the Bank recently selected JP Morgan as the contractor, and the Phoenix securitisation, (€2 bn), for which UBS was selected as the contractor. The government will closely monitor the banks' demand for Hercules and will proceed with Hercules 2, extending the duration of the scheme and increasing the state guarantees. Meanwhile, the Bank of Greece is promoting its plan for the creation of a bad bank, estimating that the tools for dealing with NPLs should be further supported. The BoG has hired three consultancies, which will study the proposal for the establishment of Asset Management Company: Rothschild, Boston Consulting and Deloitte will undertake respectively: the investigation of the conditions for the transfer of NPLs from banks to the Asset Management Company, the adaptation of the plan to European regulations and legislation, and tax issues. Original Source: Capital.gr Adaptation/Summary: Kiki Athanasiadis
 
Non-binding bids were submitted for Alpha Bank's Cepal-Galaxy project
Reportedly, at least five investors have entered last week the bidding process for Alpha Bank's Galaxy Project, including PIMCO and Bain. Alpha Bank management is optimistic for the outcome of the tender. The project consists of 100% of the new Cepal (servicer) and 95% of the intermediate and low rating titles of Galaxy. There is also information about another major player in the secondary market, who signed a confidentiality agreement and entered the process at the last minute. Alpha Bank executives say they are satisfied with the number and quality of bids, noting that if competition remains at this level and when bids are submitted, the new Cepal will be transformed into a strong investment scheme, creating growth and security conditions for its staff. The sale of up to 100% of Cepal and 95% of the titles of the intermediate and low-grade Galaxy title is the first large-scale modular transaction to come out after the pandemic in Europe. Cepal, which has been servicing the NPLs of Alpha Bank, comes with NPL claims of €27 bn. The fact that the buyer can get 100% of Cepal is an advantage as the buyer can create the strongest independent servicer in terms of portfolio and prospects in the domestic market. In the cases of Intrum Hellas and doValue Greece, Piraeus and Eurobank, respectively, maintained 20%, with the right to sell in a few years. Original Source: Euro2day Adaptation/Summary: Kiki Athanasiadis
 
DoValue to service NBG's Icon portfolio, bought by Bain
DoValue and Bain Capital have signed a deal for the servicing of Icon portfolio (NBG). More specifically, doValue announced the signing of a memorandum of understanding with Bain Capital Credit, for the exclusive management of a non-performing loan portfolio of total receivables of almost €2.6 bn. The portfolio was bought from the National Bank of Greece and consists mainly of secured loans of large, medium and small businesses, from more than 1,500 debtors all over Greece. The agreement includes a wide range of actions to prepare for portfolio integration and management, to be carried out by doValue Greece (formerly Eurobank FPS), with a view to initiating active servicing within six months. DoValue strengthens its leading position in the domestic market of independent servicers and strengthens its relationship with Bain Capital Credit, which is already a customer of the doValue Group in Spain and Italy. Original Source: Capital.gr Adaptation/Summary: Kiki Athanasiadis