Alpha Bank equity increase

Location:

Greece

Project number:

48029

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

23 Jun 2021

Status:

Signed

PSD disclosed:

20 Sep 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

EBRD has invested in a follow-on equity investment in Alpha Services and Holdings SA in the amount of EUR 7 million.

Project Objectives

The Project is part of a EUR 800 million capital increase, which will be utilised in the context of Alpha's recent business plan announcement to (i) accelerate NPE clean up and improve balance sheet strength, (ii) improve operational efficiency, (iii) drive fee and commission income recovery, (iv) capitalise on the significant lending growth opportunity in the Grek banking sector and (v) help with international expansion in Romania. 

Transition Impact

ETI score: 60

Transition impact stems from the following TI qualities:

- Resilient: Demonstration of successful restructuring

- Well governed: Setting standards for corporate governance and business conduct

Client Information

ALPHA SERVICES AND HOLDINGS SA

Alpha Services and Holdings is a universal bank operating in Greece. On a consolidated basis it is the third largest bank in Greece out of the four systemic banks with total assets of EUR 70.1 billion at YE2020.

EBRD Finance Summary

EUR 72,016,912.00

Up to EUR 8 million follow-on investment (EUR 65 million investment in 2015).

Total Project Cost

EUR 72,016,912.00

EUR 800 million capital increase.

Additionality

The aim of the proposed investment is threefold: (i) continue supporting Alpha Bank in its transition from a NPE laden bank to becoming a sustainbly profitbale institution through growth in both Greece and Romania, (ii) send a strong signal to the market that EBRD is supportive of Alpha and its new strategic plan and (iii) safeguard the Bank's investment and avoid significant dilution.  

Environmental and Social Summary

N/A

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Sylvia Kourkouli
sylvia.kourkouli@alpha.gr
0030 210 326 2437
https://www.alpha.gr/en/group
Stadiou 40, 102 52 Athens

Implementation summary

N/A

PSD last updated

20 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

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The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

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OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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