National Bank of Greece (“NBG”) announces that it has entered into a definite agreement with the Investment Firm Bain Capital Credit (“Bain Capital”) for the disposal of a portfolio of c. 2,800 non-performing, predominantly secured, corporate contracts with total principal amount of c. €1.6 billion (c. €0.6 billion of allocated collateral value). The transaction is being implemented in the context of NBG’s NPE deleveraging strategy and in accordance with the Operational Targets submitted to the Single Supervisory Mechanism (“SSM”).
The consideration amounts to c. 21% of the principal amount and the transaction has a neutral capital impact to the Bank.
After the closing of the transaction, Bain Capital is expected to assign the servicing of the portfolio to a loan and credit management company regulated by the Bank of Greece under the applicable legal framework.
In Project Icon, and on behalf of NBG, Morgan Stanley & Co. International plc is acting as financial advisor, Karatzas & Partners and Milbank LLP as local and international external legal counsels and Deloitte Greece as transaction and accounting advisor. The closing of the transaction is subject to standard conditions precedent and the consent of the Hellenic Financial Stability Fund.