DEAL: Greek SME loan securitisation

Author: Amélie Labbé | Published: 4 Nov 2016

Greece has completed its first SME loan securitisation since 2007 signalling a progressive return of structured lending to the country.

The National Bank of Greece’s (NBG) €648 million ($719 million) deal, which was carried out using a typical securitisation structure, is expected to reduce its dependence on short-term funding and restore international investor confidence in Greek assets.

Greece has undertaken its first SME loan securitisation in a decadeThe deal was carried out via Ireland-based Sinepia, a special purpose vehicle (SPV) created to securitise a portfolio of some of NBG’s SME loans, primarily floating rate commercial real estate property debt. According to Nikos Vassilis, partner at Koutalidis Law Firm, the fact that all the loans in the portfolio are performing is significant as so-called bad loans still account for roughly one-third of all commercial loans in Greece. The European Bank for Reconstruction and Development, the European Investment Bank, the European...