The tender (project Frontier) for the bad loans’ securitisation of €6.1 bn is set to launch soon. Approximately €4.7 bn of these, are housing loans. The target is for the project to be completed within the first half of 2021.
NBG aims to consolidate its balance sheet by launching the expected securitisation of NPEs of €6.1 bn.
The Frontier project is expected to reduce the bank’s stock of non-performing exposures by slightly higher than 60%. At the end of September, corporate NPEs amounted to €9.96 bn. After the completion of the transaction, the NPEs will drop to €3.8 bn.
The portfolio consists of approximately 190 thousand NPLs, with a gross book value of about €6.1 bn. €4.7 bn of these are mortgages, about €1.1 bn are of large and small enterprises loans, and €0.3 bn euros are retail.
However, about 90% (€5.5 bn) of the portfolio has collateral on real estate, mainly residential. Through this securitisation, NBG will reduce the stock of its non-performing housing exposures by about 80%. The number of borrowers this involves is about 80 thousand.
The bank along with the consultant have completed the valuation of the mortgaged real estate. The reception of a credit rating and the submission of the application for inclusion of the first rating titles in the Hercules securitisation programme, will be completed by the end of the year. Non-binding bids are expected to be submitted within the first quarter of 2021 and binding bids in the second quarter of the year.
The managing director of the bank, Paul Mylonas estimated that the impact from the transaction on the funds will be negligible.
Original Source: Euro2day.gr
Adaptation/Summary: Kiki Athanasiadis