Time is approaching for the submission of binding bids on the Galaxy project from Alpha Bank, one of the largest non-performing loan transactions in Europe, with the lender's management upbeat about the successful completion of the transaction.
The staff of the bank has been working intensively for the completion of the transaction, so that after the investors is selected, the deal will be quickly signed.
Strong investors have expressed interest in the transaction: Pimco, Cerved as well as Elliot together with Credito Fondiario and Davidson Kempner. Alpha Bank sources expect that at least three binding offers will be submitted, however, other sources state that all four investors will proceed with the submission of a binding offer.
According to Alpha Bank's schedule, the binding offers must be submitted by next Friday, October 23, with the aim of announcing the preferred investor in November. The goal of the management is for the agreement to be signed within 2020 in order to be reflected in the annual accounting statements.
It is noted that Project Galaxy consists of three transactions: a) the sale of non-performing credit exposures totaling 10.8 billion euros b) the transfer of the bank's NPEs management departments to Cepal, the specialized receivables management company which will also pass to the investor and c) the so-called hive down, ie the splitting of the bank into a bad part, which will have the rest of the problem loans, and the good part consisting only of sound assets.
As noted by Alpha Bank CEO Vassilis Psaltis at an event last week: "Alpha Bank is in the final stretch of Project Galaxy, a particularly complex venture consisting of - essentially - 3 consecutive transactions, through which we will create a new bank that leaves behind its problems of the past, so that we can look to the future and actively support the Greek economy."