Alantra advises Oxalis in the first rated NPL securitisation in Cyprus

Dec 2021

Securitisation - Public Rated Senior NPLs ABS

Value €2.2 billion

London – Alantra, the global investment banking and asset management specialist, is pleased to announce that it has advised Oxalis, a fund managed by one of the largest fixed income asset managers (Pimco), on the securitisation of a c.€2.2 billion portfolio composed mainly of residential non-performing exposures (Project Hera). The securitisation follows Oxalis’s acquisition of the underlying NPL portfolio from Bank of Cyprus, the largest financial institution in Cyprus, also advised by Alantra. 

This transaction envisaged a double SPV structure with a domestic SPE and an off-shore SPV. Hestia, a Luxembourg SPV, issued €475 million in Senior notes and €1,725 million in Junior notes. Oxalis will retain 100% of the Junior notes complying with the risk retention requirements. Additionally, Class A notes have been rated by DBRS and Scope with BBB(low)(sf) and BBB(sf), respectively.

Upon completion, Oxalis managed to refinance the acquisition of the securitised portfolio at a lower funding cost with longer maturity and no recourse.

Alantra acted as co-lead arranger of Project Hera, given its extensive and unique knowledge of the Cypriot credit market. 

Project Hera represents the first rated NPL public securitisation executed in Cyprus.