Alpha Bank Group on Monday announced the completion of “Project Sky”, the biggest transaction of its non-performing exposures portfolio, with a nominal value of 2.4 billion euros, ever made by a Greek bank and the second largest such transaction in Cyprus.
The portfolio will be sold to Cerberus through Alpha International Holdings NPEs – a full subsidiary of the group. Project Sky is part of Alpha Bank’s strategy to reduce its non-performing loans by lowering its NPE rate by around five percentage points to 13%. The bank said the estimated impact of the transaction on its financial results (0.2 billion euros) will have an impact on the Group’s Capital Adequacy of 20 basis points.
Completion of the transaction is expected in the third quarter of 2022. The Project Sky will fully restructure Alpha Bank Cyprus’ portfolio with the gross book value of NPE and REO falling to less than 80 million euros, releasing funds and allowing the bank to focus on new activities.
SOURCE; AMNA
