Alpha Bank AE: covered bonds investment

Location:

Greece

Project number:

49725

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

13 Dec 2017

Status:

Signed

PSD disclosed:

05 Feb 2018

Translated version of this PSD: Greek

Project Description

The EBRD subscribed EUR 40 million to the EUR 500 million covered bond issued by Alpha Bank A.E. ("Alpha") under its EUR 8 billion Direct Issuance Covered Bond Programme I. The covered bond has a soft bullet structure with a maturity of five years and marks Alpha's first public covered bond issuance.

Project Objectives

The bond proceeds will be used to reduce Alpha's dependence on Eurosystem's Emergency Liquidity Assistance funding; thus, contributing towards the normalisation of its liquidity position.

Transition Impact

The project will enable Alpha to access medium-term funding, diversify its funding sources and reduce its dependence on Eurosystem funding in order to address the balance sheet missmatches.

In addition, supports the Alpha's efforts to create a benchmark pricing curve for its debt instruments.

Client Information

ALPHA BANK AE

Alpha is one of the four systemic banks in Greece with its shares listed in the Athens Stock Exhange.

It offers a wide range of high-quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance roducts, investment banking, brokerage and real estate management.

EBRD Finance Summary

EUR 100,000,000.00

EUR 100 million envelope for EBRD's investments in covered bonds issued under EUR 8 billion irect Issuance Covered Bond Programme I. The investment in the five-year benchmark covered bond issued by Alpha in January 2018 was made in the amount of EUR 40 million.

Total Project Cost

EUR 500,000,000.00

EUR 500 million under its EUR 8 billion Direct Issuance Covered Bond Programme I.

Environmental and Social Summary

Categorised FI (2014 ESP): Under the existing exposure, Alpha is in compliance with the EBRD's Performance Requirements 2, 4, and 9 and will be required to continue to comply with the EBRD's Performance Requirements 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures Mortgage Lending and submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation

None.

Company Contact Information

Ioannis Asimelis
ioannis.asimelis@alpha.gr
+30 210 326 4118
+30 210 326 8309
www.alpha.gr
40 Stadiou Str., 102 52 Athens, Greece

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