Attica Bank has entered into an agreement with Davidson Kempner Capital Management to dispose of two significant non-performing loan (NPL) portfolios, named “Domus” and “Rhodium”.

The deal involves the sale of 95% of the mezzanine and junior tranches of the notes from these securitisations, representing a gross book value of approximately € 3.7 billion.

Under the terms of the agreement, Attica Bank will retain full ownership of the senior tranches, which benefit from the “Hercules” asset protection scheme, and a 5% interest in the mezzanine and junior tranches. This strategic move is aimed at significantly reducing the bank’s NPL ratio, which is expected to fall below 3% on completion of the transaction.

The sale proceeds reflect the value of the senior tranches combined with the purchase price for the subordinated notes.

This represents approximately 35% of the gross book value of the Domus and Rhodium portfolios. The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals.

Attica Bank was advised financially by UBS Europe SE and legally by Milbank LLP and Hogan Lovells LLP internationally and Potamitis-Vekris locally.

Original Story: Iefimeridia | Author: Anthee Carassava
Edition: Prime Yield