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.