Since 2013, his course Bank of Attica it is nothing but an eternal attempt at disinfection. These efforts included a successive increase in share capital, state involvement through the issuance of preferred shares, issuance of bonds, sale and securitization. red loansfunds of the pension body of the former CMEDE and later SECTIONchapters EFKAstate re-engagement by activating the Deferred Tax Act (DTC) and ultimately taxpayer funds through thousand

An abundance of funds in excess of 1.1 billion euros, flowed in recent years into Attica Bank, is still not enough to consolidate the bank. The big problem was the bad loans that remained on his balance sheet and were never terminated despite successive loan securitizations in 2017-2020. The reason is related to the fact that these loans were not securitized on Hercules terms, i.e. with a government guarantee, as was the case with the four systemically important banks. Whether or not this view explains the poor performance of the bank, it is implied that even today, the resolution effort is reduced to the management and renegotiation of four red loan portfolios (Astir I and II, Metexelixis and Omega) totaling €2.6 billion . .

As a result, in recent years, the bank recorded continuous losses, which, in turn, led to the activation of the law on deferred taxation three times over the past two years, to the issuance of warrants and subsequently to the attraction of HFSF.

HFSF’s participation was not limited to the acquisition of shares issued after the conversion of warrants. It was extended with a €153 million hot money contribution during the 2021 share capital increase and will be repeated in the upcoming €473.3 million increase in April, in which the Fund will participate using its rights. has and contributes 329 million euros.

The lack of securitization of red loans through Hercules is for many the root cause of the problems the bank is facing.

Following the failure of negotiations with Ellington’s investment capital, the private investor who will participate in the share capital increase has been replaced Thrivest Holdings, the interests of D. Backus, G. Kaimenakis and A. Exarchos and the agreement signed last week was accompanied by the heroic withdrawal from the agreement of the traditional shareholder and blood donor of Attica Bank, TMEDE. The Engineers’ Fund, which is leaving in 25 years, decided to exit the upcoming IPO, preferring to take a stop loss and suffer a depreciation in the value of its investment and a dilution of its holding from 20.11% to 5%. This percentage is expected to decrease further due to the merger of the three banks, which, according to the agreement, will take place within the next 12 months.

TMEDE’s decision, while surprising, was a logical consequence as the management of the Engineers’ Foundation, having already spent over 800 million euros, resigned themselves to the Foundation’s inability to further support its investment, paving the way for Thrivest’s entry. This development became a one-way street when, according to information, the efforts of TMEDE management to ensure conditions for maintaining the value of the Fund’s investment in the bank in the next AMC were ignored, as they did not find a response. ears from new investors in Attica.

The TMEDE exit will be replaced by four systemic banks that will contribute 40 million euros, i.e. 10 million euros each, mainly taking into account the stability of the banking system. This decision has also been tested in the recent past through their participation in the increase in the share capital of Pancreatia Bank by 15.5 million euros.

In an agreement signed last week between HFSF, Thrivest and Pankritia, the Fund insisted on securing its investment under Article 8 of the law governing its activities, which obliges HFSF to participate in a capital increase with a positive return. This means that at the end of the journey, the Fund will have to exit its investment in Attica Bank, taking the invested money.

EFKA will take part in the capital increase of 40 million euros, retaining its stake (8%).

Thrivest plan for the 5th pole

Thrivest shareholders, who will participate with 30 million euros in the AMC of Attica Bank, acquiring at this stage 4.93% of its authorized capital, seek to create a single bank by merging Attica Bank with pancreas – preceded by the takeover of HSBC and the Cooperative Bank of Central Macedonia – and through it the creation of the 5th so-called pole, which will increase competition in the banking system.

The venture’s success can be judged in the coming months as the banks, brought in by the new shareholder and supervisors, must effectively manage a heavy portfolio of non-performing loans, which together approaches 3.8 billion euros. The management of Attica Bank has already announced that it has reached an agreement to repurchase the subordinated bonds of the Metexelixis securitization in order to completely abandon the said securitization.

Participating banks must effectively manage a large portfolio of non-performing loans, which together approaches 3.8 billion euros.

For its part, Pancreatia has a loan portfolio of 1.7 billion euros, of which 1.1 billion euros are classified as overdue (64% percentage). In addition to the high NPE percentage, the bank has a low coverage percentage, which is limited to 35%, while together with the coverage, the reserve percentage is about 88%.

On this basis, there is a possibility that a new share capital increase will be required if the €473.3 million raised during April and the €97 million raised at the end of December by Pancreatia are not sufficient. for consolidation, but also the development of a single bank.

Thrivest’s shareholders have made it clear from the outset that they are participating in an increase with the aim of becoming masters of the game by controlling 50+1 shares of the new bank to be created. In addition to the exchange relationship, which is to be agreed after the legal and financial audit conducted at Pancreatia, the audit of a private investor in a single bank again raises the issue of warrants, which is the “key” to the cancellation of the course. betting in favor of Thrivest. It should be noted that warrants, regardless of the number of shares they represent, can be placed as immediate collateral and result in the circulation of shareholder interest and the transformation of a minority shareholder into a majority shareholder. This method was provided for in the agreement with Ellington and was also brought back to discussion with Thrivest, leaving the details to be agreed after due diligence to be carried out in Pancreatia.

In the context of the Attica Bank share capital increase, scheduled to be completed on April 25 with the placement and distribution of unallocated new shares to be issued, Pangreetia, 44% controlled by Thrivest, will contribute €34 million. and will become a shareholder of Attica Bank with a 5.59% stake.