The EBRD and Intrum Holding AB jointly invested in an unsecured non-performing exposure (NPE) portfolio, originated by Piraeus Bank, one of the leading banking groups in Greece. The portfolio consists of approximately 53,000 loans with total legal claims of about €1.7 billion and a gross book value of €0.7 billion. The portfolio was acquired through a special purpose company, Iris Hellas Investments Designated Activity Company (DAC), while management of the portfolio was assigned to Intrum Hellas (the "Servicer").
As of September 2020, NPEs in Greece stood at €63.5 billion, representing 35.3 per cent of total exposures. The project will further support the stability of the Greek banking sector, helping to reduce the current number of total exposures by Greek banks, in line with the reduction targets agreed with the supervisory authorities.
ETI score: 80
Transition impact is expected to derive from:
- Resilient: A successful reduction in Piraeus' NPE stock
- Competitive: EBRD's involvement aims to foster greater competition and transparency in the NPE market in Greece.
IRIS HELLAS INVESTMENTS DESIGNATED ACTIVITY COMPANY
Client: Iris Hellas Investments Designated Activity Company (the "AssetCo")
Seller: Piraeus Bank S.A. ("Piraeus")
EBRD Finance Summary
Total Project Cost
Financing structure: EBRD's involvement further improves financial capacity
Risk mitigation: EBRD provides comfort to clients and investors by mitigating non-financial risks
Standard Setting: EBRD's expertise on corporate governance
Environmental and Social Summary
Categorised FI (ESP 2019)
The Servicer and the AssetCo will need to comply with EBRD's Performance Requirements 2 and 4, continue to carry out a social risk screening and management aligned with some provisions of PR9. The Servicer will need to continue to manage potential social impacts on borrowers by diligent application of its Code of Conduct and in line with the Greek Code of Conduct for NPLs, which require credit institutions to carry out a vulnerability assessment and, inter alia, take into consideration the repayment capacity of borrowers. A report, in an agreed format, on the compliance with the applicable EBRD's PRs, will be submitted annually to EBRD.
Technical Cooperation and Grant Financing
Company Contact Information
+30 210 333 5026
PSD last updated
10 Feb 2021
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Independent Project Accountability Mechanism (IPAM)
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