Piraeus Bank and Intrum signed a binding agreement for the sale of thirty percent (30%) of the Phoenix portfolio. More specifically, Intrum bought the mezzanine notes of the securitization with a gross book value of €1.92 bn. The Phoenix portfolio consists mainly of non-performing mortgages.
Piraeus Bank has already submitted an application to include the high repayment priority bonds of Phoenix securitization in the “Hercules” securitisation program.
The valuation of the portfolio based on the nominal value of the high maturity bonds and the sale price of the intermediate maturity bonds corresponds to 50% of the total gross book value of the portfolio.
As result of the transaction, the non-performing exposures ratio of Piraeus Bank will decrease to 44% fr om 47%, while the coverage ratio of non-performing exposures from provisions will increase to 46% from 45%.
In addition, subject to the required corporate and regulatory approvals, the Bank is considering distributing to its shareholders sixty-five percent (65%) of the interim priority bonds of the Phoenix securitization at a percentage of 5% in accordance with the securitization supervisory requirements.
Following the imminent completion of the Bank’s corporate transformation (hive-down), the newly licensed credit institution will retain one hundred percent (100%) of high priority bonds and five percent (5%) of intermediate priority bonds.
Original Source: Capital.gr
Adaptation/Summary: Kiki Athanasiadis