Alantra continues advising Piraeus Group on its successful NPE cleaning up plan with the signing of Project Sunrise II



Value €2.7 billion

Nov 2021
Securitisation - Arranger and financial advisor
Value €2.7 billion

Athens – Alantra, the global investment banking and asset management specialist, is pleased to announce that its client, Piraeus Financial Holdings S.A. (“Piraeus” or “the Bank”) has signed a definitive agreement with Intrum AB (publ) (“Intrum”) and Serengeti Asset Management LP (“Serengeti”) for the sale of 49% and 2% of the mezzanine and junior notes of the Sunrise II securitisation respectively.

Piraeus is proceeding with the implementation of Project Sunrise II (“Sunrise II”) a securitisation of a c.€2.7bn mixed portfolio of non-performing exposures. Piraeus has submitted an application for the inclusion of the senior notes issued by the Sunrise II special purpose vehicle, in the Hellenic Asset Protection Scheme (“Hercules”, “HAPS”), with a total nominal value of €1.2bn.

Piraeus Bank will retain 5% of the mezzanine and junior notes of the Sunrise II securitisation as per the respective securitisation requirements. Piraeus Bank will also retain 100% of the senior notes. Subject to the required approvals, the loans within the Sunrise II securitisation perimeter are expected to be derecognised from Piraeus Financial Holdings consolidated statement of financial position within Q4 2021, driving Piraeus NPE ratio to c.17% based on Q2 2021 figures, down from 45% at the end of December 2020.

The implied valuation of the Sunrise II portfolio, based on the anticipated fair value of the senior notes and the sale price of the mezzanine and junior notes, corresponds to c.47.4% of the total gross book value of the Sunrise II portfolio.

The transaction is part of the wider Sunrise transformation program Piraeus announced on 16 March 2021 and follows the successful closing of the €7.2bn Sunrise I securitisation, as well as the closing of Project Phoenix (€1.9bn HAPS securitisation signed in September 2020) and Project Vega (€1.4bn HAPS securitisation signed in Mach 2021). Sunrise II underlines the rapid progress in Piraeus’ c.€19bn NPE clean-up plan, leading to a single-digit NPE ratio within less than 12 months. Alantra has acted as financial advisor and co-arranger for Piraeus in all HAPS securitisation transactions.

This transaction is subject to all customary approvals by the competent Greek authorities, as well as to the consent of the Hellenic Financial Stability Fund.

Vasilis Kosmas, Partner at Alantra, commented: Once again, it has been a pleasure to advise our client Piraeus, in successfully delivering its clean-up plan. This transaction further demonstrates  Alantra’s capabilities to advise complex transactions in the credit market.

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