October 23, 2020

Milbank Advises National Bank of Greece on Sale of Cypriot-Risk NPL to Bain Capital


Milbank LLP has advised National Bank of Greece (NBG) on the disposal of its 100% stake in a Cypriot Credit Acquiring Company (CAC Coral) to Bain Capital Credit (Bain Capital).

CAC Coral owns a portfolio of non-performing corporate, SME and consumer and mortgage loans with total gross book value of approximately €325 million (€200 million of allocated collateral value). The portfolio consists predominantly of legacy non-performing loans. The transaction is being implemented in the context of NBG's NPE deleveraging strategy and in accordance with the Operational Targets submitted to the Single Supervisory Mechanism ("SSM"). Τhe consideration amounts to approximately 31% of the gross book value of the portfolio and the transaction has a neutral capital impact to the Bank.

The closing of the transaction is subject to standard conditions precedent, including the approval of the transaction by the Central Bank of Cyprus and the Commission for the Protection of Competition, as well as the consent of the Hellenic Financial Stability Fund.

The Milbank team comprised European Leveraged Finance/Capital Markets partner Apostolos Gkoutzinis, Corporate partner Mark Stamp, special counsel Merih Altay, Corporate associate Gemma Cullen, special counsel Joji OzawaTax associates Steve Quinn and Cosmos Fung, European Leveraged Finance/Capital Markets partner Sarbajeet Nag and associate Byron Nicol.