Alpha Bank SME collateralised loan securitisation

Location:

Greece

Project number:

48770

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

14 Dec 2016

Status:

Complete

PSD disclosed:

21 Dec 2016

Translated version of this PSD: Greek

Project Objectives

The transaction will support Alpha Bank Greece (“Alpha” or the “Originator”) to access medium-term funding using SME collateralised loan obligation (“CLO”) via a securitisation structure. The EBRD funding will be used to expand Alpha's SME loan portfolio.

Project Description

Investment of EUR 50 million in senior notes under a SME CLO structure in Greece issued by Alpha Proodos D.A.C. (“the SPV” or “the Issuer”). The asset pool is composed of working capital and investment loans to SMEs originated and sold by Alpha to the Issuer. The securitised pool will have a one year revolving period.

Transition Impact

The transaction is crucial signal for the viability of securitisations in the country. Increased confidence in the Greek financial system and in securitisations in particular, will allow Greek banks, which had to rely on volatile short-term deposits and Eurosystem funding, to access medium to long-term funding and balance their asset / liability maturity profile. The transaction also provides Alpha with appropriate funding to increase lending to SMEs whose access to finance has been particularly challenging.

The Client

Alpha, one of the four systemic banks in Greece with Group total assets of EUR 66.2 billion as of September 2016, holding approx. 23% of domestic lending market share and c. 21% of domestic deposits market.

EBRD Finance

As part of the proposed securitisation project, EBRD invests in senior notes denominated in Euros and securitised by a portfolio of SME loans originated by Alpha. The transaction structure envisages the issuance by the Issuer of approximately EUR 320 million senior and EUR 320 million mezzanine/junior notes. EBRD is subscribing to EUR 50 million of the senior notes. EIB and Citibank are subscribing to the remaining senior notes and Alpha Bank Greece is subscribing to the mezzanine/junior notes.

Project Cost

EUR 640 million.

Environmental Impact

Alpha is required to comply with the EBRD’s Performance Requirements 2, 4 and 9, adopt and implement Environmental and Social Procedures for SME loans and submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation

None.

Business opportunities

For business opportunities or procurement, contact the client company.

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