June 5, 2020 / 4:17 PM / a month ago

Greece's National Bank in deal to sell soured loans to Bain Capital

ATHENS, June 5 (Reuters) - National Bank (NBG) agreed to sell 1.6 billion euros ($1.81 billion) of non-performing corporate loans to Bain Capital Credit as part of efforts to clean up its balance sheet, Greece’s second-largest lender said on Friday.

Greek banks have been making headway in their bid to sell, write off or restructure billions of euros of bad debt accumulated during the last financial crisis.

NBG said the portfolio of about 2,800 mostly secured corporate loans, dubbed project Icon, had a collateral value of about 600 million euros.

The agreed sale price was about 21% of the portfolio’s principal amount of 1.6 billion euros, NBG said. The deal will be capital neutral for the bank.

“After the closing of the transaction, Bain Capital is expected to assign the servicing of the portfolio to a loan and credit management company regulated by the Bank of Greece under the applicable legal framework,” NBG said.

Morgan Stanley was NBG’s adviser on the deal with Deloitte Greece the accounting adviser.

The closing of the transaction will need the consent of the Hellenic Financial Stability Fund (HFSF), Greece’s bank bailout fund which holds a 40% stake in NBG.

Bain Capital Credit is a credit specialist with $40.8 billion in assets under management, investing across the spectrum of credit strategies, including leveraged loans, distressed debt and non-performing loans (NPLs). ($1 = 0.8849 euros) (Reporting by George Georgiopoulos, editing by Louise Heavens)

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