National Bank of Greece SME CLO

Location:

Greece

Project number:

48467

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

20 Jul 2016

Status:

Complete

PSD disclosed:

08 Aug 2016

Translated version of this PSD: Greek

Project Description

The proposed securitisation project would refinance SME working capital and investment loans originated by National Bank of Greece ("NBG"), thereby freeing up capital and providing funding to make new SME loans in Greece. The EBRD would subscribe to senior notes issued against a securitised portfolio of NBG's SME loans.

Project Objectives

The transaction will allow NBG to access medium-term funding via an ABS structure. The EBRD funding will be used to expand NBG's SME loan portfolio sustainably.

Transition Impact

The transaction is the first publicly listed ABS structure since 2007 and signals the viability of the ABS asset class in Greece. The transaction could be the catalyst for future issuances, allowing  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 NBG with appropriate funding to increase lending to SMEs whose access to finance has been particularly challenging.

Client Information

NATIONAL BANK OF GREECE S.A

National Bank of Greece, the largest of the four systemic banks in Greece.

EBRD Finance Summary

EUR 50,000,000.00

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 NBG. The transaction structure envisages the issuance by Sinepia D.A.C. ("issuer") of approximately EUR 324 million senior and EUR 324 million mezzanine/junior notes. EBRD is subscribing to EUR 50 million of the senior notes with EIB, EIF and NBG subscribing to the remaining senior notes and NBG also subscribing to the mezzanine/junior notes. Senior notes are rated BB by S&P and B- by Fitch.

Total Project Cost

EUR 648,000,000.00

Environmental and Social Summary

National Bank of Greece 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

Company Contact Information

Apostolos Mantzaris, Deputy Head of Funding Solutions and Structured Finance
mantzaris.ap@nbg.gr
+30 210 332 8517
https://www.nbg.gr/en
68 Akadimias Str, 106 78, Athens, Greece

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