CrediaBank (the “Bank”) has successfully completed the acquisition of a portfolio of re-performing loans, primarily residential mortgages, with a total gross book value of approximately €37.4m (the “Jewel Portfolio” or the “Transaction”). The loans form part of existing securitisations under the “Hercules” programme and are serviced by Cepal Hellas S.A. (“Cepal” or the “Servicer”).
The Transaction is a pioneering move in the Greek banking market, as it is the first transfer of a portfolio of re-performing residential mortgage loans directly to a bank.
The loans were previously classified as non-performing but have now fully returned to performing status under the criteria of the European Banking Authority (EBA). The final scope of the portfolio was determined following a thorough assessment of all borrowers.
This development is a strategic initiative by the Bank, which is at the forefront of restoring people’s access to the banking system by offering a practical solution to those who were excluded from mainstream banking because of past debts that are now being repaid as agreed.
The acquisition of the Jewel Portfolio strengthens CrediaBank’s position in retail banking. The Bank is expected to welcome more than 800 new individual customers, with the aim of building broader banking relationships and meeting their additional needs.
The Transaction is fully aligned with the Bank’s strategy and growth objectives, combining attractive returns with prudent risk management while enabling it to provide further support to creditworthy borrowers across Greece.
Cepal will continue to service the portfolio for a short period after the Transaction is completed, until the loans and related services have been migrated to the Bank, with the aim of ensuring borrowers continue to receive uninterrupted service.
PwC M&A Consulting Services P.C. (“PwC”) acted as financial adviser to the Bank, while the law firm “Vyzas – Grigoriadou and Associates” (“PwC Legal Services”) acted as legal adviser.