Piraeus Bank: Transfers EUR 1.2 billion-worth of securities to an investment house

Piraeus Bank: Transfers EUR 1.2 billion-worth of securities to an investment house

Athens, December 19, 2014/ Independent Balkan News Agency

By Spiros Sideris

Piraeus Bank came to an agreement with Kohlberg Kravis Roberts (KKR) to create a hedge fund, to which will be transferred, by securitisation portfolio, EUR 1.2 billion worth of assets.

The hedge fund will remain under the management and/or control of KKR Credit, while Piraeus Bank will undertake the servicing of the portfolio, which consists of updated and non-performing loans as well as equities.

The agreement provides that funds under the managed of KKR Credit will provide to the companies of the transferred portfolio additional funding of up to EUR 300 million and the management of the portfolio will be held by KKR Credit to maximise its value.

The transaction is expected to close in the first quarter of 2015, after the fulfillment of regulatory and other prerequisites.

KKR is one of the world’s leading investment banks, managing USD 96.1 billion-worth of funds, while it has a significant track record in international investment in the world, seeking to create value by contributing to long term capital, strategic thinking and the introduction of best practices in the functioning of companies.

Commenting on the transaction, Anthimos Thomopoulos, CEO of Piraeus Bank said that “the agreement with KKR gives the position of a new and dynamic approach to the management of the Bank’s loans and investments”.

According to Thomopoulos, “being the largest Greek Bank, we are dealing with a wide range of tools to optimise and maximise the recovery of funds from our positions”.

The CEO stressed that KKR has an excellent track record worldwide and the necessary experience in supporting companies to enhance their value by investing long-term capital, as well as the organisational and financial restructuring. Its intention to invest additional funds with reference to the transferred portfolio, is a vote of confidence in the long-term prospects of the Greek economy”.

Directors of the Bank in the transaction are Deutsche Bank AG, Shearman & Sterling LLP and the Law Firm Koutalidis. Directors of KKR in the transaction are Weil, Gotshal & Manges, Karatzas & Partners Law Firm, Arthur Cox and Deloitte LLP.