Company hires and sector developments

Eurobank merger

Eurobank is merging with Grivalia in a bid to accelerate the reduction of non-performing exposures to a ratio of approximately 15% by end-2019 and single-digits by 2021. The transaction envisages an NPE deconsolidation of approximately €7bn, with all shareholders keeping potential upside from the assets. The merger will create the best capitalised bank in Greece, with a total capital ratio at 19%, and it is hoped that the real estate management skills of the Grivalia team - led by George Chryssikos - will unlock the value of the combined group’s real estate assets. Chryssikos is set to become non-executive vice-chairman of the Eurobank board and will join its strategic planning committee.

NPL disposal

UniCredit has disposed of a €590m (gross claim value) portfolio of Italian SME non-performing unsecured loans on a non-recourse basis via securitisation vehicles managed by J-Invest and Illimity. J-Invest purchased a €384m portion of the portfolio and Illimity bought the remainder. The average ticket size of the assets is €2.7m. Separately, Illimity has signed a €50m financing contract to a Fortress affiliate, guaranteed by a portfolio of non-performing corporate secured loans with a gross nominal value of €1.2bn.