Securitization of non-performing loans portfolio: BGP involved in milestone transaction

Bahas, Gramatidis & Partners is proud to announce that it led and coordinated the team of legal advisors of Attica Bank SA on a complex transaction involving the securitization of the bank’s NPL portfolio (value of approximately €1.3 billion) and the assignment of the servicing of same. In particular, the bank transferred a portfolio of defaulted loans to a special purpose vehicle (SPV) which in turn issued €525 million senior notes and €806.2 million junior notes, all subscribed by the bank. At the same time, the SPV assigned the management of this portfolio for 10 years to the company Thea Artemis SA, a loan servicing company that the bank had recently established.

The Bank agreed with a multinational investor led by Aldridge EDC Specialty Finance to sell 80% of the shares of Thea Artemis SA and the above junior notes for € 70 million.

Completion of the sale is subject to approval by the Bank of Greece, whereupon the investor (through Thea Artemis SA) will undertake the management of the securitized portfolio.

This milestone transaction has been highly praised as innovative and efficient and is a break-through in the Greek market by combining the standard securitization structure with the newly enacted provisions on banking credit managers.

BGP was involved through our Managing Partner Dimitris Emvalomenos and our Senior Associate Christos Gramatidis.