Hellenic financial institution to receive undertaking loans from RCB

Hellenic Lender declared that it has entered into an settlement to receive a undertaking loan portfolio (the “Transaction”) from RCB Bank Limited, which was beforehand acknowledged as the Russian Commercial Bank (Cyprus).

In accordance to a assertion, the Transaction consists of a doing loan portfolio of gross reserve price of all over €556 million, related money collateral and other credit score balances of around €89 million and letters of assurance of about €23 million. As aspect of the Transaction, up to 16 personnel from RCB Lender Confined who manage this portfolio will be transferred to the Financial institution.

About 75% of the financial loans are Cypriot exposures, while the remaining 25% are real estate financial loans in the European Union and the Cyprus. The major sectoral exposures are: 37% authentic estate and construction, 29% accommodations, and 19% wholesale and retail trade. About 54% of the Cypriot exposures relates to current clients of the Lender.

The personal loan portfolio is well collateralised and includes of accomplishing small business financial loans to 103 debtors. The borrowers associated will be vetted for sanctions compliance and AML clearance, in line with the rigorous monitoring performed by the Bank to regulate all connected threats and comply with the relevant sanctions imposed on Russia and Belarus. The Lender will have the appropriate to refuse onboarding borrowers that fail to meet up with its criteria.

The financial loan portfolio contains: Tranche A (relating to only Cypriot exposures) of about €292 million and Tranche B of all-around €264 million. The acquisition of Tranche A is anticipated to be accomplished by 24 March 2022, while the acquisition of Tranche B is expected to be finished by 31 May perhaps 2022, topic to relevant thanks diligence, last arrangement and all appropriate regulatory approvals.

Centered on September 2021 figures, the Bank’s carrying out personal loan portfolio is envisioned to enhance by about 11%, even though the professional-forma NPE ratio (excluding APS-NPEs) will be diminished to roughly 13.4% from 14.5%. The Bank’s chance weighted belongings are predicted to raise by about €656 million, resulting in a professional-forma cash adequacy ratio of 2000%, compared to 22.3% as of September 2021. On completion of acquisition of Tranche A, the Bank’s pro-forma cash adequacy ratio is anticipated to be about 21,%.

Oliver Gatzke, CEO of Hellenic Bank said: In line with the Bank’s method of expanding its enterprise in Cyprus, the Transaction raises the Bank’s client base in company lending, offers cross providing opportunities, enhances its running cash flow by larger fascination earnings and results in opportunity for growing its non-curiosity income.

RCB announcement

RCB Lender Ltd announces that it has entered into an arrangement with Hellenic Lender Community Corporation Ltd for the sale of a accomplishing financial loan portfolio of up to c. €556 million, relevant resources on the accounts of the corresponding borrowers and relevant off-stability sheet obligations.

The loan portfolio remaining marketed includes of two tranches – Tranche A of c. €292 million relating to Cypriot exposures and Tranche B of c. €264 million relating to Cypriot, other European and Cyprus exposures. The sale of Tranche A is envisioned to be completed on 24 March 2022, while the sale of Tranche B is anticipated to be done by 31 Might 2022, subject matter to all pertinent regulatory approvals.

The personal loan portfolio is properly collateralized and contains of primarily corporate loans. About 75% of the financial loans are Cypriot exposures, when the remaining c.25% are industrial true estate loans in the European Union and the Cyprus. The portfolio consists of exposures to Cypriot and other European debtors in the subsequent main sectors: inns and accommodation, professional serious estate, construction and enhancement, wholesale and retail trade, producing, food and beverage, renewable electricity and schooling.

The sale of the bank loan portfolio shall improve even further the funds and the liquidity buffers of RCB Lender Ltd and shall build further sizeable buffers, as a result allowing for for important absorption ability of any opportunity external shocks. The total money adequacy ratio of RCB Lender Ltd shall raise from c. 21% to in excess of 27%. The Bank’s liquidity shall exceed the overall sum of all liabilities, which allows RCB Financial institution Ltd the two assembly its obligations to all of its clients in complete as effectively as to maintain ample degrees of liquid assets for its further functions. RCB Bank is envisioned to obtain a complete sum of around 500 million Euros from the sale.

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Editor’s take note

The day Russia invaded Ukraine, Russian state-owned VTB Lender, which obtained slapped by the U.S. with sanctions the very same day, transferred its stake in Cyprus’ RCB Bank to the two remaining shareholders, both of which are organizations registered in Cyprus.