NPE portfolio Greece (Project Iris)

Location:

Greece

Project number:

51332

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

24 Jul 2020

Status:

Repaying

PSD disclosed:

10 Feb 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

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"). 

 

Project Objectives

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.

Transition Impact

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.

Client Information

IRIS HELLAS INVESTMENTS DESIGNATED ACTIVITY COMPANY

Client: Iris Hellas Investments Designated Activity Company (the "AssetCo")

Seller: Piraeus Bank S.A. ("Piraeus")

EBRD Finance Summary

EUR 10,650,925.00

Total Project Cost

EUR 37,351,624.00

Additionality

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

None

Company Contact Information

Investor Relations
investor_relations@piraeusbank.gr
+30 210 333 5026
http://www.piraeusbankgroup.com/

PSD last updated

10 Feb 2021

Understanding Transition

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

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

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.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

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.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

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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