Alantra advises Piraeus Bank on its largest synthetic STS securitization of corporate and SME loans

Dec 2024

Sell-side advisory

Value €1.98bn

London – Alantra has acted as Sole Arranger and Financial Advisor to Piraeus Bank S.A. (“Piraeus”) on the successful execution of its largest synthetic STS securitization so far and the first with a direct issuance of Credit-Linked Notes (CLNs). The transaction references a €1.98bn portfolio of Corporate and SME loans.

The transaction was structured as a four-tranche securitization, with Piraeus retaining both the first-loss and senior tranches. The bank issued two notes (Class A and Class B) to international institutional investors, using the proceeds to purchase eligible collateral, securing its obligations under the reference guarantee and the notes.

This transaction received approval for Significant Risk Transfer (SRT) and Simple, Transparent, and Standardised (STS) status, leading to a Risk-Weighted Assets (RWA) reduction of up to approximately €1.1 billion.

Holger Beyer, Managing Director at Alantra, said: “The strong interest from international institutional investors highlights the confidence in Piraeus Bank’s portfolio and the robustness of the structure. We are proud to have played a role in delivering a successful outcome that strengthens the bank’s balance sheet and enhances its lending capacity.”

This transaction reinforces Alantra’s position as a leading advisor in financial institutions and structured finance, supporting clients in optimizing their capital structures through innovative securitization solutions.