Piraeus and Intrum agree to Vega deal

Piraeus and Intrum agree to Vega deal

Piraeus Bank and credit management company Intrum on Tuesday announced an agreement for the securitization of a nonperforming loans portfolio under the name “Vega,” including loans with collateral in the form of residential and commercial real estate assets.

The Vega package includes three special purpose vehicles – Vega I NPL Finance DAC, Vega II NPL Finance DAC and Vega III NPL Finance DAC – with an accumulated accounting value of around 4.9 billion euros.

Piraeus Financial Holdings and Intrum AB have signed a binding agreement for the sale of 30% of the securitization’s mezzanine notes. The announcement said that Piraeus Bank applied for the inclusion of the Vega securitization in the Hercules program, seeking Greek state guarantees worth €1.4 billion.

The pro forma result of the Vega and Phoenix transactions will lead to a reduction of the bank’s nonperforming exposures ratio to 36% from 47%, while the coverage ratio of NPEs will rise to 47% from 45% in September 2020.

Piraeus Financial Holdings is examining plans to distribute around 65% of the mezzanine notes to its shareholders, while Piraeus Bank will hold 5% of these notes.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.