Alpha Bank sells €2.4 bln NPL, real estate portfolio

Alpha Bank Group has reached an agreement with an affiliate of Cerberus Capital Management L.P. to sell a portfolio of Cypriot non-performing loans and real estate properties of a total gross book value of EUR 2.4 bln.

The Portfolio will be sold by the group’s 100% (indirect) subsidiary, Alpha International Holdings S.M.S.A to the U.S. equity firm.

According to a statement by the company: “Project Sky forms part of Alpha Bank Group’s strategy for the reduction of its stock of non-performing loans and is the culmination of a series of similar successful transactions completed by the group over previous years.

“With this transaction, the group further de-risks its balance sheet by reducing the N.P.E. ratio by an additional approximately five percentage points to 3% (as of September 30, 2021 pro forma).”

The impact on the group’s income statement is fully in line with the allocated loss budget at EUR 0.2 bln, with a commensurate impact on the group’s Total Capital Adequacy Ratio (CAD) of 20 bps.

Completing the transaction is expected to take place in Q3 2022, subject to the receipt of customary regulatory approvals.