- EBRD boosts development of the Greek synthetic securitisation market
- Support for Piraeus Bank in enhancing its capital resilience and increasing lending capacity
- Piraeus Bank to commit 170 per cent of the EBRD’s participation to green projects
The European Bank for Reconstruction and Development (EBRD) is providing €10 million in credit protection to Piraeus Bank SA, one of Greece’s four systemic banks and a long-standing partner of the EBRD. It is investing in the senior mezzanine tranche of a synthetic balance sheet securitisation of a €1.3 billion portfolio of performing SME (small and medium-sized enterprises) and corporate loans, originated by Piraeus Bank.
The transaction is expected to support Piraeus Bank in its efforts to further enhance its capital resilience by achieving a risk-weighted assets relief, and free up lending capacity to the real economy. Moreover, Piraeus Bank is committing 170 per cent of the EBRD’s participation to finance new green investments in renewable energy and energy efficiency.
The transaction is the EBRD’s second investment in a synthetic securitisation by a Greek bank and, through its participation, the Bank aims to further support the development of the Greek synthetic securitisation market.
The transaction has been structured in such a way as to satisfy the requirements for significant risk transfer under the European Union’s Capital Requirements Regulation and to achieve simple, transparent and standardised eligibility (subject to all customary approvals), promoting transparency and higher transaction standards.
The EBRD started operating in Greece on a temporary basis in 2015 to support the country’s economic recovery. To date the Bank has invested more than €6.3 billion in over 100 projects Greece’s corporate, financial, energy and infrastructure sectors.