Alpha Services and Holdings S.A. – together with its subsidiaries – has reached an agreement with an affiliate of Cerberus Capital Management, L.P. for the sale of a portfolio of Cypriot non-performing loans and real estate properties of a total gross book value of 2.4 billion euro.
The Portfolio will be sold by the 100% indirect subsidiary of the Group, Alpha International Holdings S.M.S.A.
According to a press release issued on Monday 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 the previous years.
“With this transaction, the Group further de-risks its balance sheet by reducing the NPE ratio by an additional approximately five percentage points to 3% (as of September 30, 2021 pro forma).”
The press release also said the impact on the Group’s income statement is fully in line with the allocated loss budget at 0.2 billion euros, with a commensurate impact on the Group’s Total Capital Adequacy Ratio (CAD) of 20 bps (as of September 30, 2021 pro forma).
The Group also noted that completion of the transaction is expected to take place in Q3 2022, subject to the receipt of customary regulatory approvals.