Alpha Services and Holdings S.A. (together with its subsidiaries, the “Alpha Bank
Group” or the “Group”) has reached an agreement with an affiliate of Cerberus
Capital Management, L.P. (“Cerberus”) for the sale of a portfolio of Cypriot nonperforming loans and real estate properties with a total gross book value of c.
Euro 2.4 billion.
The Portfolio will be sold by the 100% (indirect) subsidiary of the Group, Alpha International Holdings S.M.S.A. Project Sky forms part of Alpha Bank Group’s strategy for the reduction of its stock of non-performing loans and is the culmination of a series of similar successful transactions completed by the Group over the previous years.
With this transaction, the Group further de-risks its balance sheet by reducing the NPE ratio by an additional approximately five percentage points to c.13% (as of September 30, 2021 pro forma). The impact on the Group’s income statement is fully in line with the allocated loss budget at c. Euro 0.2 billion with a commensurate impact on the Group’s Total Capital Adequacy Ratio (CAD) of c.20 bps (as of September 30, 2021 pro forma).
Completion of the transaction is expected to take place in Q3 2022, subject to the
receipt of customary regulatory approvals.
Alantra Corporate Portfolio Advisors International Limited (“Alantra”) acted as
financial advisor, KPMG Limited (Cyprus) as local due diligence advisor, Allen &
Overy LLP as international legal counsel, and Chryssafinis and Polyviou LLC as
local legal counsel.
