Subject to final Board approval, the European Bank for Reconstruction and Development (EBRD) is considering co-investing in partnership with KKR and the banks.
The platform will provide fresh long-term capital and operational expertise to large Greek corporate borrowers helping them stabilize, recover and grow for the benefit of all stakeholders. The Greek banks will share in the upside as the businesses’ performance recovers.
This is a pioneering platform, both in terms of scope and scale, and also has the flexibility to allow other lenders to participate by contributing loan portfolios or adding existing exposures to a specific company to those of the other banks.
Theodore Athanassopoulos, Executive General Manager of Alpha Bank, said: "The platform aims to provide viable Greek Corporates which encounter financial difficulties the chance to have access both to liquidity and operational expertise that will help them invest, grow, recover and create new job opportunities. As such it is an important step towards the implementation of Alpha Bank’s NPE Strategy."
Constantinos Vousvounis, General Manager, Head of Troubled Assets Group of Eurobank, said: "Aligned with Eurobank’s strategy towards assisting Greek corporates facing financial difficulties to recover, the platform with KKR, Pillarstone, EBRD and Alpha Bank will offer to those corporates strategic and technical expertise as well as new funding. It is crucial to act promptly in this field to create the conditions for corporates to recover and safeguard jobs, made possible by new capital and knowhow. Today’s announcement is a major step in the right direction. We welcome the participation of the other Greek banks to the platform."
Johannes P. Huth, Head of KKR Europe, Africa and Middle East, said: "We have developed this innovative approach in partnership with Eurobank, Alpha Bank and EBRD, and look forward to the opportunity to make long-term capital available to Greek companies."
Noel Edison, EBRD Director for Insurance and Financial Services, said: "The successful recapitalisation of the Greek banks at the end of 2015 was an essential step towards financial stability. The next important milestones include a more effective management of underperforming exposures. The platform will provide corporates in financial difficulty with new financing and turn-around operational expertise, which are prerequisites to unlocking the inter-creditor impasse and supporting growth in the real economy."
John Davison, CEO of Pillarstone, said: "The platform, that Pillarstone manages, offers Greek companies new financial resources and operating support to enable them to deliver on their potential. It is a unique approach based on a collaborative model that benefits a wide range of stakeholders including the banks."
The transaction is subject to the completion of certain conditions precedent.
HSBC Bank plc acted as the coordinator and structuring adviser of the transaction for Alpha Bank and along with Mediobanca for Eurobank.
