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Alpha Bank: 3 + 1 binding offers for €2.2 bn Cypriot NPEs

Alpha Bank has accepted three plus one binding offers for a portfolio of non-performing loans in Cyprus.

Project Sky is a portfolio with a gross book value of about €2.2 bn, which includes mortgages (53%), large corporation loans (35%), loans to small and micro enterprises (7%) and some consumer loans. It has been subdivided into two sub-portfolios: One includes loans with a gross book value of about €1.3 bn and the second loans with a gross book value of about €0.9 bn.

The binding offers were submitted on December 24. Though the names of the investors have not been made public, the request for information/clarifications during the Virtual Data Room process, show Cerberus, Apollo, and the Bain-Fortress consortium as the potential bidders. PIMCO, reportedly is only interested in one of the two parts of the portfolio.

The investors’ interest is focused on loans from the Cypriot real estate development companies. These are mainly loans given for the development of complexes with hospitality developments and have the land as collateral. In addition, the portfolio includes mortgage loans granted to Cypriots or foreigners.

Alantra is acting as the bank’s financial advisor. The bank estimates that the loss from the sale will be less than €200 m.

Original Source: Euro2day.gr

Adaptation/Summary: Kiki Athanasiadis