Zepos & Yannopoulos advises Eurobank as seller in the first non-performing residential mortgage securitisation with SRT recognition

Zepos & Yannopoulos advises Eurobank as seller in the first non-performing residential mortgage securitisation with SRT recognition

We advised Eurobank Ergasias S.A. (“Eurobank”), a Greek systemic bank listed on the ATHEX, in Project Pillar, a securitisation of a non-performing residential mortgage loan portfolio of gross book value of c. € 2 billion. The transaction is the first of its type in the market both in terms of asset class and in terms of structure, being the first Greek deal to have obtained green light from the ECB for Significant Risk Transfer recognition under the European Capital Requirements Regulation  (575/2013) and a rating by DBRS (at BB). On 27 June 2019, Eurobank announced that it entered into an agreement with Celidoria, a Pimco entity, for the sale of 95% of the mezzanine and junior notes issued by Pillar. Eurobank shall retain 100% of the senior notes, as well as 5% of the mezzanine and junior notes. The implied valuation of the portfolio based on the nominal value of the senior notes and the sale price of the mezzanine notes corresponds to c. 58% of the total gross book value of the portfolio. The closing of the transaction is subject to SSM approval and is expected to occur within July 2019.

The Zepos & Yannopoulos team, led by Christina Papanikolopoulou, partner, head of Finance & Capital Markets practice group, included partner Kely Pesketzi, senior associate Mary Nigritinou and associates Athina Palli, Niki Ignatidi and Alex Kontogiannis. Partners Maria Zoupa and Alex Karopoulos advised on tax matters.