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NPL Chart of the Week: Securitisations dominate Greek NPL pipeline as Alpha Bank plans EUR 12bn megadeal

NPL Chart of the Week: 25 November 2019

Planned non-performing loan securitisations now total EUR 27.4bn in Greece, almost three quarters of the EUR 37.1bn total of ongoing NPL transactions, according to data from the Debtwire NPL Database.

Alpha Bank this week confirmed its plans to launch the EUR 12bn Project Galaxy securitisation, which would reduce its Greek NPL stock by 73%, in its Strategy Update 2020–2022. The bank will use the Greek Government’s Hellenic Asset Protection Scheme, or Hercules, which was officially approved by the European Commission this month.

At full size, the transaction would be the fourth largest NPL securitisation since 2015, with Banca Monte dei Paschi di Siena’s EUR 23.9bn GACS deal, Siena NPLs 2018, the largest. Project Galaxy would reduce Alpha Bank’s NPE ratio from 44% to 20% in one fell swoop according to the bank.

The scheme is closely modelled on the Italian GACS scheme, which Italian banks have closed 24 deals for a total volume of EUR 80.2bn since 2016.

Eurobank Ergasias has also made progress on a significant securitisation this month, the sale of 20% of the mezzanine notes of the EUR 7.4bn Project Cairo.

The final two bidders are PIMCO and a consortium of Fortress and doValue, according to press rumours. PIMCO had previously won exclusivity on the notes but the agreement expired at the end of September.

National Bank of Greece and Piraeus Bank are also working on securitisations, as reported.

Amy Finch Data Journalist Debtwire
Amy Finch Data Journalist Debtwire

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