The provision of a senior loan of € 50 million to Cepal Hellas Financial Services Single Member SA (Cepal), together with Alpha Bank SA (total amount of € 105 million), under the NPL Resolution Framework (Framework).
The Project facilitates the reduction of NPLs in Greece, which would help in cleaning up the banks' balance sheets and freeing up capacity for new lending, thus strengthening financial resilience in the country.
ETI score: 80
The Project will support the Framework TI qualities by enhancing both the market's (i) resilience through the enhancement of one of the leading independent (non-bank-owned) NPL servicers in Greece and (ii) competitiveness by enabling further business expansion of an established NPL servicer, thereby fostering competition and ultimately improving the servicing quality and capacity of the market.
CEPAL HELLAS FINANCIAL SERVICES SA
Cepal is one of the leading NPL servicers in Greece, specialising in providing servicing management for loan and credit receivables, regulated by the Bank of Greece.
EBRD Finance Summary
Total Project Cost
The EBRD loan will offer (i) a tenor and volume, which is respectively above the market average and large enough to fill the funding gap, and necessary to structure the project, and (ii) risk mitigation by providing the loan alongside Alpha Bank, a long-standing client of the EBRD's, thereby providing comfort and support to enable the project.
Environmental and Social Summary
Cepal will be required to comply with the EBRD's Performance Requirements 2, 4 and the stipulations from PR9 which are relevant to NPL portfolios. Cepal will be required to manage the portfolio in line with its code of conduct and the Greek code of conduct for NPLs, and submit annual reports to the EBRD on its compliance with the PRs. Cepal has an adequate Environmental and Social Management System in place to manage the risks related to NPL portfolios, which are deemed to be generally low, including procedures for the debt collection process and a Code of Conduct.
Technical Cooperation and Grant Financing
Company Contact Information
Cepal Hellas Financial Services Single Member S.A.
(+30) 213 0887600
PSD last updated
23 Dec 2021
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