Greece - Corporate Restructuring Platform

Location:

Greece

Project number:

48504

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Target board date:

20 Jul 2016

Status:

Cancelled

PSD disclosed:

17 May 2016

Translated version of this PSD: Greek

Project Description

The EBRD is considering to co-invest in a Greek corporate restructuring platform vehicle (Project Number 48504) and provide new funding (Project Number 48066), along and in partnership with KKR, as well as to provide expertise in corporate governance which is often a core challenge at underperforming businesses.

The project involves the assignment of the management of credit exposures of a selected number of companies under restructuring into a vehicle managed by Pillarstone, the pan-European platform launched by KKR Credit. Eurobank and Alpha Bank, two of the largest Greek banks, are currently part of the transaction. KKR Credit is part of KKR & Co. L.P., a global leading investment firm. The planned assignment of management is subject to the completion of certain conditions precedent. The transaction will be open to other Greek lenders and companies who would benefit from fresh capital and additional operational support.

Project Objectives

The project aims to secure the most efficient and profitable management and restructuring of underperforming exposures by involving the underlying borrowers and turnaround experts in the restructuring process. The platform will provide long-term capital and operational expertise to medium and large Greek companies, thereby supporting Greek banks in managing assets and help Greek companies stabilise, grow and create value for the benefit of all stakeholders.

Transition Impact

The expected transition impact is to demonstrate the set-up of a shared work-out platform and its successful restructuring of distressed assets while addressing corporate governance shortfalls, ultimately reducing Greek banks' NPL ratios. Progress on NPL management is expected to increase the Greek banks' capacity to rebuild their depositor bases and restart lending activity.  

The Client

EUROBANK ERGASIAS SA

ALPHA BANK AE

Third largest (in terms of assets) with total assets of EUR 69 billion (c. 18% market share) at YE2015.

KKR

Leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.

EBRD Finance

EUR  50,000.000

Project Cost

EUR  50,000.000

Environmental Impact

Categorised FI. There may be environmental and social issues associated with restructuring of underperforming exposures. KKR and Pillarstone will be required to comply with the EBRD's Performance Requirements 2, 4 and 9, which will include the implementation of agreed E&S eligibility criteria, applicable Environmental and Social Risk Management Procedures, adherence to the EBRD's E&S Exclusion list as well as submission of Annual Environmental and Social Reporting to the Bank.

Technical Cooperation

None.

 

Business opportunities

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