Piraeus Bank Secures €10 Million Investment from EBRD for Balance Sheet Securitisation

Piraeus Bank Secures €10 Million Investment from EBRD for Balance Sheet Securitisation

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is investing €10 million in the senior mezzanine tranche of a synthetic balance sheet securitisation of a €1.3 billion portfolio of performing small and medium-sized enterprise (SME) and corporate loans originated by Piraeus Bank, one of Greece’s four systemic banks. This investment is expected to help enhance Piraeus Bank’s capital resilience and lending capacity to the real economy. Piraeus Bank has also pledged to finance new green investments in renewable energy and energy efficiency. This is the EBRD’s second investment in a synthetic securitisation by a Greek bank and aims to support the development of the Greek synthetic securitisation market.

(PRESS RELEASE) LONDON, 24-Feb-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has announced a €10 million investment in the senior mezzanine tranche of a synthetic balance sheet securitization of a €1.3 billion portfolio of performing small and medium-sized enterprise (SME) and corporate loans originated by Piraeus Bank. As one of Greece‘s four systemic banks and a long-standing partner of the EBRD, Piraeus Bank aims to enhance its capital resilience and lend capacity to the real economy through this transaction.

Moreover, Piraeus Bank has committed to financing new green investments in renewable energy and energy efficiency, pledging 170% of the EBRD’s participation. The EBRD’s investment is expected to achieve a risk-weighted assets relief and support the development of the Greek synthetic securitization market.

The transaction satisfies the requirements for significant risk transfer under the European Union’s Capital Requirements Regulation and promotes transparency and higher transaction standards. The EBRD has been operating in Greece since 2015 and has invested more than €6.3 billion in over 100 projects in the country’s corporate, financial, energy, and infrastructure sectors. This investment underscores the EBRD’s commitment to supporting the Greek economy’s recovery.

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SOURCE: EBRD