Davidson Kempner Capital Management LP and Attica Bank have advised a legal entity to agree to sell 95% of the intermediate and low senior notes of two securitizations secured by two portfolios of non-performing exposures (NPEs).. The total gross book value of these notes is about €3.7 billion.

Attica Bank will retain 100% of the high-priority bonds, utilising the provisions of the Hercules Credit Institutions Securitisation Guarantee Scheme, and 5% of the intermediate and low-priority bonds.

The transaction is implemented within the framework of the bank's strategy to reduce its non-performing exposures and the investment agreement signed between the shareholders on 18.07.2024 and ratified by Law 5127/2024.

The total proceeds for Attica Bank reflect the high-priority bonds and the price for the intermediate and low-priority bonds, representing approximately 35% of the total gross book value of the Domus and Rhodium portfolios.

Following the completion of the transaction, Attica Bank is expected to have an NPE ratio below 3%. The transaction is expected to close during Q4 2024, subject to customary approvals. 

UBS Europe SE is acting as a financial advisor, while Milbank LLP, Hogan Lovells LLP and Potamitis-Vekris are acting as international and domestic legal advisors to the bank, respectively. 

Davidson Kempner Capital Management LP is a global investment management firm with over 40 years of experience and a focus on fundamental investments with a multi-strategies approach. Davidson Kempner has approximately $37 billion in assets under management and over 500 employees in seven offices: New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai.