National Bank of Greece enters into a definitive agreement with Bain Capital, Fortress and doValue for the disposal of a portfolio of non-performing exposures (Project Frontier)
National Bank of Greece (“NBG” or “Bank”) announces that it has entered into a definitive agreement with a consortium consisting of affiliates of Bain Capital Credit, Fortress Investment Group and doValue Greece, for the sale of 95% of the Mezzanine and Junior notes from a securitisation backed by a portfolio of non-performing exposures (“NPE”) with a total gross book value of c€6b. NBG will retain 100% of the Senior notes, utilizing the provisions of the Hellenic Asset Protection Scheme (”Hercules”), and 5% of the Mezzanine and Junior notes. The transaction is being implemented in the context of the Bank’s NPE deleveraging strategy and is in line with the targets submitted to the Single Supervisory Mechanism (“SSM”).
The total proceeds for NBG mainly reflect the Senior notes and the consideration for the Mezzanine and Junior notes, corresponding to c50% of the total gross book value of the Frontier Portfolio. The transaction will boost NBG’s total capital by c150bps, with the pro-forma 1H.21 Total Capital ratio increasing to 18.5%, while the NPE ratio on the same date stands at 12.7%.
The transaction is expected to be completed within Q4 21, subject to required approvals. Following the completion of the transaction, doValue Greece, a legal entity authorised and regulated by the Bank of Greece under the Law 4354/ 2015 with several years of wide experience in servicing NPE portfolios, will undertake the servicing of the Frontier Portfolio.
Morgan Stanley & Co. International plc is acting as financial advisor and arranger of the transaction, Oliver Wyman as technical advisor while Clifford Chance LLP and Karatzas & Partners as international and local external legal counsel to NBG, respectively.