Alpha Bank AE: covered bonds investment

Location:

Greece

Project number:

49725

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

13 Dec 2017

Status:

Signed

PSD disclosed:

05 Feb 2018

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 subscribed EUR 40 million to the EUR 500 million covered bond issued by Alpha Bank A.E. ("Alpha") under its EUR 8 billion Direct Issuance Covered Bond Programme I. The covered bond has a soft bullet structure with a maturity of five years and marks Alpha's first public covered bond issuance.

Project Objectives

The bond proceeds will be used to reduce Alpha's dependence on Eurosystem's Emergency Liquidity Assistance funding; thus, contributing towards the normalisation of its liquidity position.

Transition Impact

ETI score: 65

The project will enable Alpha to access medium-term funding, diversify its funding sources and reduce its dependence on Eurosystem funding in order to address the balance sheet missmatches. In addition, supports the Alpha's efforts to create a benchmark pricing curve for its debt instruments.

Client Information

ALPHA BANK SA COVERED BONDS

Alpha is one of the four systemic banks in Greece with its shares listed in the Athens Stock Exhange. It offers a wide range of high-quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance products, investment banking, brokerage and real estate management. 

EBRD Finance Summary

EUR 200,000,000.00

EUR 100 million envelope for EBRD's investments in covered bonds issued under EUR 8 billion Direct Issuance Covered Bond Programme I. The investment in the five-year benchmark covered bond issued by Alpha in January 2018 was made in the amount of EUR 40 million.

Total Project Cost

EUR 500,000,000.00

EUR 500 million under its EUR 8 billion Direct Issuance Covered Bond Programme I.

Environmental and Social Summary

Categorised FI (2014 ESP): Under the existing exposure, Alpha is in compliance with the EBRD's Performance Requirements 2, 4, and 9 and will be required to continue to comply with the EBRD's Performance Requirements 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures Mortgage Lending and submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation and Grant Financing

None

Company Contact Information

Ioannis Asimelis
ioannis.asimelis@alpha.gr
+30 210 326 4118
+30 210 326 8309
www.alpha.gr
40 Stadiou Str., 102 52 Athens, Greece

Implementation summary

The project supported the stabilisation of the Greek banking sector and the broadening of banks' financing options by re-introducing covered bonds as a valuable funding tool. The project has successfully contributed to the diversification of Alpha's funding sources, supporting its return to the debt capital markets. The investment in Alpha's longer-tenor covered bonds has also contributed to the development of a benchmark pricing curve for Greek banks' funding instruments.

PSD last updated

15 Feb 2022

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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