Bank of Cyprus announced Friday the completion of the sale of €2.7bn non-performing loans known as Project Helix for €2.1bn.
In a statement, the lender said it sold a portfolio of loans with a gross book value of €2.8bn, including €2.7bn NPLs secured by real estate to “certain funds affiliated with Apollo Global Management LLC.”
“Overall, the transaction is capital accretive, with a net positive impact on the Group capital ratios of 70 basis points.”
At the end of Q1, 2019, the Group’s CET1 ratio and total capital ratio stood at 14.9 per cent and 17.9 per cent respectively, both pro forma for Project Helix, the bank said.
Participation of the Bank of Cyprus in the senior debt in relation to financing the transaction has been syndicated down from the initial level of €450m to €45m, representing 4 per cent of the total acquisition funding.
The group remains focused on continuing to improve its asset quality position and to seek solutions, both organic and inorganic, to make the bank a stronger and safer institution, capable of supporting the local economy, the lender said.