Piraeus Bank announced it had reached a deal to sell a portfolio of nonperforming shipping loans (NPL) to an entity affiliated with Davidson Kempner Capital Management. 

The agreed price will be about 53% of the portfolio’s gross book value of €400 million, the bank said. 

The sale of the portfolio, dubbed project Dory, is subject to approval by the Hellenic Financial Stability Fund, a shareholder in Piraeus Bank, the lender said. 

The transaction will reduce Piraeus Bank’s ratio of non-performing exposures to about 15% from 16% at the end of September 2021 and increase its NPE coverage ratio to about 40% from 39%. 

The sale’s expected capital impact will be around minus 20 basis points versus the bank’s end-September total capital ratio.

Original Story: Ekathimerini |Newsroom 
Photo: Piraeus Bank website
Edition: Prime Yield