Alpha Bank management team in London for the €12bn NPL portfolio sale

Less than ten days after its announcement, Alpha Bank’s management team is fully implementing the strategic plan that will lead to the final consolidation of the bank’s balance sheet and the transformation of the group into an efficient organization focused on financing the economy. Management contacts with institutional investors have begun in the British capital and reportedly the report suggest that the securitization of the Galaxy portfolio, which includes loans of up to €12 billion, will be given to investors in early December, with bids to be submitted in January.

The size of the securitization, announced by CEO Vassilis Psaltis, is expected to attract the largest investment funds, which in addition to securitized loans will acquire the majority stake in one of the largest servicers in the Greek market, Cepal. Alpha Bank has already initiated the acquisition of 60% of Cepal by Centerbridge. 40% of the servicer already belongs to the bank. The bank will transfer about 800 employees to the new company, who will be added to the 300 current Cepal employees.

The bank has already begun the process of evaluating the portfolio to be securitized, indicative of the maturity of the consolidation plan it has launched.

The bank’s consolidation and transformation plan into a sound banking organization will be completed by the separation of Alpha Bank’s core business into a new banking entity, which will be fully owned by today’s listed company. This company will be transformed into a holding company, fully retaining the rights of shareholders. The impact on equity has been estimated at up to €2 billion and, according to Alpha Bank management, will be fully absorbed, and supervisory indicators will not drop at any time throughout the transaction below the minimum required threshold.

Original Story: Kathimerini

Adaptation/Translation: Kiki Athanasiadis

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