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Alpha Bank to sell bad loan portfolio to Fortress and Davidson Kempner
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ATHENS (Reuters) – Alpha Bank ACBr.AT, one of Greece’s four largest lenders, said on Friday it signed a binding agreement to sell a 650 million euro ($717.34 million) portfolio of corporate bad loans to Fortress and Davidson Kempner.
Alpha Bank to sell bad loan portfolio to Fortress and Davidson Kempner
ATHENS (Reuters) – Alpha Bank ACBr.AT, one of Greece’s four largest lenders, said on Friday it signed a binding agreement to sell a 650 million euro ($717.34 million) portfolio of corporate bad loans to Fortress and Davidson Kempner.
The transaction, named project Hermes, is expected to reduce Alpha Bank’s non-performing exposures (NPE) ratio by 10 basis points, it said.
The deal is expected to be completed within May.
($1 = 0.9061 euros)
(Reporting by Lefteris Papadimas)
Frequently Asked Questions about Alpha Bank to sell bad loan portfolio to Fortress and Davidson Kempner
1What is a bad loan?
A bad loan is a loan that is unlikely to be repaid, often due to the borrower's financial difficulties or bankruptcy.
2What is a loan portfolio?
A loan portfolio is a collection of loans held by a financial institution, which can include various types of loans such as personal, corporate, or mortgage loans.
3What are non-performing exposures (NPE)?
Non-performing exposures (NPE) refer to loans or financial assets that are in default or close to being in default, indicating a higher risk of loss for the lender.
4What is a corporate bond?
A corporate bond is a debt security issued by a corporation to raise capital, where the issuer promises to pay back the principal along with interest.
