Italy 
Portugal 
Spain 
Alpha Bank picks Davidson Kempner for Galaxy bad-loan portfolio and Cepal
Alpha Bank has selected Davidson Kempner as its preferred bidder to buy a €10.8 bn portfolio of non-performing. The portfolio, known as Galaxy Project also includes the disposal of Alpha Bank’s bad loan servicer, Cepal.
Davidson Kempner has valued the assets at about €290 m, trumping a rival offer by PIMCO.
The sale, which is expected to be finalized by the end of 2020, is the most significant attempt by a Greek bank to clean up its balance sheet amid fears that the proportion of soured loans to businesses and individuals will surge as a consequence of the Covid-19 crisis.
The sale of the Galaxy portfolio is expected to reduce Alpha Bank’s NPE ratio to 24% from around 43% and its NPL ratio down to 13% from 30%.
Alpha Bank launched the process early this year, drawing initial interest from a series of bidders including Italian firms Cerved and Credito Fondiario. But only Davidson Kempner and Pimco made binding offers and advanced to the final stages of the auction, with Alpha’s board selecting Davidson Kempner as its preferred bidder after a board meeting on Friday.
Cepal, with a headcount of about 900, will be servicing the portfolio of bad loans that Davidson Kempner is expected to buy, in addition to non-performing loans of other parties. It currently services a little under €30 bn of bad loans.
Original Source: Euro2day
Adaptation/Summary: Kiki Athanasiadis