Greek multinational financial services company Piraeus Bank has reached an agreement to sell a portfolio of non-performing shipping loans for €400 million (about 452.7 million).
The shipping loans will be sold to an entity affiliated with Davidson Kempner Capital Management, a hedge fund management firm based in the US.
As informed, the agreed consideration will reach approximately 53% of the portfolio gross book value.
The transaction is subject to ordinary conditions precedent and the consent of the Hellenic Financial Stability Fund.
The transaction is reducing the NPE ratio of Piraeus Financial Holding Group, part of Piraeus Bank , to circa 15% from 16% as of 30 September 2021 and increases its NPE coverage ratio to circa 40% from 39% previously.
The expected capital impact of the transaction stands at around -20bps over the 30 September 2021 total capital ratio of Piraeus Financial Holdings.