We have advised National Bank of Greece on the signing of Project Frontier, a milestone multi-asset securitization of NPEs with a gross book value of c. €6 billion. 95% of the Mezzanine and Junior notes will be sold to a consortium consisting of affiliates of Bain Capital Credit, Fortress Investment Group and doValue Greece and National Bank of Greece will retain 100% of the Senior notes, utilizing the provisions of the Hellenic Asset Protection Scheme (”Hercules”), and 5% of the Mezzanine and Junior notes. It is the first transaction of such magnitude, which does not entail the spin-off of the internal NPL servicing unit.
The transaction will boost NBG’s total capital by c150bps, with the pro-forma 1H.21 Total Capital ratio increasing to 18.5%, while the NPE ratio on the same date stands at 12.7%. The positive capital impact of the transaction, made possible among others due to its structural and legal novelties, allowed NBG to be the first among the Greek systemic banks which did not follow the hive-down of its banking operations model.
Our team was led by our Partner Catherine Karatzas, assisted by our Senior Counsel Christos Paraskevopoulos and Associates Stavroula Simitzi, Georgia Perivolioti and Anastasia Mourmouti, whereas our Senior Counsel Aggeliki Tsatsi advised on certain employment law aspects.
We are glad to continue working with our client for the completion of this complex and value adding transaction.