Greece: Alpha bank launching one of the largest NPE securitizations in the European market

Αlpha Bank, one of the four systemic banks in Greece, has announced a major securitization of NPLs via a carve-out process.

The securitisation will reach 12 billion euros, and is forecast to reduce NPLs from the bank’s balance sheets by 73%, dropping its NPEs and NPLs indexes to 20% and 10% from the current 44% and 28%, respectively. Following the completion of the transaction, the CET1 index is expected to exceed the minimum allowed ratio set by banking regulators, with the goal being a CET1 ratio of above 15 percent of Cash Against Documents (CAD), rising to 17% by 2022.

Alpha Bank intends to apply for up to Euro 3.7 billion of guarantees under the Hellenic Asset Protection Scheme. The Bank announced its intention to reorganize its NPE management platform through a partnership with a strong international player. It plans a carve-out from the Bank into Cepal Hellas and the creation of a new servicer (to be named “New Cepal”) in order to support the servicing capacity for remedial actions on non-performing portfolios. SOURCE: ALPHA BANK

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