📋 Tender Overview
Location:
Greece
Project number:
55888
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
BE
Approval date:
20 Nov 2024
Status:
Signed
English-language PSD published:
05 Feb 2025
Project Description
Investment of EUR 50 million in credit linked notes ("CLNs") covering the credit risk of the senior mezzanine tranche in a synthetic balance sheet securitisation of a performing mixed loans portfolio, originated by Piraeus Bank S.A., a commercial bank incorporated in Greece (the "Originator" or "Piraeus").
Project Objectives
The project boosts the resilience of a systemic bank in Greece, and subject to receipt of the ordinary terms and approvals by the competent authorities, will allow Piraeus Bank to achieve a risk weighted assets relief and optimise its regulatory capital requirements, while the anticipated RWA relief will be redeployed to new on-lending to the real economy.
Transition Impact
ETI score: 67
COUNT: 67
The project delivers transition impact through the Resilient quality, as it will contribute to (i) further enhancing Piraeus' capital resilience, ii) optimising its capital structure by achieving a risk weighted assets' relief and freeing up lending capacity, and iii) further support the expansion of the synthetic securitisation market in the country. The project also supports the Green transition quality and EBRD's Green Economy Transition ("GET") approach in Greece through Piraeus allocation of a multiple of EBRD investment towards projects, which meet strict GET-eligibility criteria.
Client Information
PIRAEUS BANK SA
Piraeus is one of the largest systemic banks in Greece, with a c. 25% market share in terms of total assets. The bank generates nearly all of its revenues domestically, following a universal banking model covering all financial and banking activities in the Greek market. Piraeus is a wholly owned subsidiary of Piraeus Financial Holdings S.A., which is listed on the Athens Stock Exchange.
EBRD Finance Summary
EUR 50,000,000.00
Additionality
The Bank's investment will further facilitate the expansion of an effective capital enhancement instrument in the Greek financial market. Furthermore, EBRD's participation promotes higher transaction standards and supports further mobilisation of institutional investors in the current and future issuances, contributing to the deepening of the market. The project also involves standard-setting in the request to allocate EBRD participation proceeds to GET-eligible projects, meeting certain demanding standards and certification requirements. This further helps Piraeus Bank to promote green projects and enhance awareness and deployment of funds in this area and sets a market example for sustainable finance.
Environmental and Social Summary
Category FI (2019 ESP). Piraeus is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, Piraeus is in
