Management of credit and equity exposures to be assigned to a
platform, managed by Pillarstone
EBRD is considering co-investing in partnership with KKR
ATHENS, Greece--(BUSINESS WIRE)--
Alpha Bank, Eurobank and KKR Credit have reached a binding agreement
today by which the banks agree to assign the management of credit and
equity exposures to a selected number of Greek companies into a platform
managed by Pillarstone.
Subject to final Board approval, the European Bank for Reconstruction
and Development (EBRD) is considering co-investing in partnership with
KKR and the banks.
The platform will provide fresh long-term capital and operational
expertise to large Greek corporate borrowers helping them stabilize,
recover and grow for the benefit of all stakeholders. The Greek banks
will share in the upside as the businesses' performance recovers.
This is a pioneering platform, both in terms of scope and scale, and
also has the flexibility to allow other lenders to participate by
contributing loan portfolios or adding existing exposures to a specific
company to those of the other banks.
Theodore Athanassopoulos, Executive General Manager of Alpha Bank, said:
"The platform aims to provide viable Greek Corporates which encounter
financial difficulties the chance to have access both to liquidity and
operational expertise that will help them invest, grow, recover and
create new job opportunities. As such it is an important step towards
the implementation of Alpha Bank's NPE Strategy."
Constantinos Vousvounis, General Manager, Head of Troubled Assets Group
of Eurobank, said: "Aligned with Eurobank's strategy towards assisting
Greek corporates facing financial difficulties to recover, the platform
with KKR, Pillarstone, EBRD and Alpha Bank will offer to those
corporates strategic and technical expertise as well as new funding. It
is crucial to act promptly in this field to create the conditions for
corporates to recover and safeguard jobs, made possible by new capital
and knowhow. Today's announcement is a major step in the right
direction. We welcome the participation of the other Greek banks to the
Johannes P. Huth, Head of KKR Europe, Africa and Middle East, said: "We
have developed this innovative approach in partnership with Eurobank,
Alpha Bank and EBRD, and look forward to the opportunity to make
long-term capital available to Greek companies."
Noel Edison, EBRD Director for Insurance and Financial Services, said:
"The successful recapitalisation of the Greek banks at the end of 2015
was an essential step towards financial stability. The next important
milestones include a more effective management of underperforming
exposures. The platform will provide corporates in financial difficulty
with new financing and turn-around operational expertise, which are
prerequisites to unlocking the inter-creditor impasse and supporting
growth in the real economy."
John Davison, CEO of Pillarstone, said: "The platform, that Pillarstone
manages, offers Greek companies new financial resources and operating
support to enable them to deliver on their potential. It is a unique
approach based on a collaborative model that benefits a wide range of
stakeholders including the banks."
The transaction is subject to the completion of certain conditions
HSBC Bank plc acted as the coordinator and structuring adviser of the
transaction for Alpha Bank and along with Mediobanca for Eurobank.
About Alpha Bank
Alpha Bank is one of the largest banking and financial groups in Greece,
with international presence and over 14,000 Employees in Greece and
With a Network of over 1,000 service points in Greece and one of the
highest capital adequacy ratios in Europe, the Alpha Bank Group offers a
wide range of financial services, including retail, SME and corporate
banking, credit cards, asset management, investment banking, private
banking, insurance, brokerage, leasing and factoring.
Since its establishment in 1879, Alpha Bank consistently supports
individual and business Customers contributing to the country's economy.
Eurobank group is a dynamic banking group active in eight countries,
with total assets of €72.9 billion and c. 17.000 employees. With a total
network of over 970 branches in Greece and abroad, the Group offers a
comprehensive range of financial products and services to its retail and
In Greece, Eurobank is one of the four pillars of the banking system.
With two distinct retail branch networks, the Eurobank Network and the
New TT Branch Network, business specialized centers, a dedicated private
banking network and electronic service channels, the Group's philosophy
focuses on high quality services to its clientele.
The Group also holds a strategic position in retail and business banking
in Bulgaria, Romania and Serbia, offers distinguished Wealth Management
services in Cyprus, Luxembourg and London and is also present in Ukraine.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com
and on Twitter @KKR_Co.
Pillarstone is a platform established in 2015 by KKR Credit, with John
Davison as co-investor and CEO, to partner with European banks to create
value by managing their exposure to non-core and underperforming assets
on their balance sheets. The platform provides long-term capital and
operational expertise to help the businesses which underpin these
non-performing and non-core exposures to stabilise, grow and create
value. It is a unique approach based on a collaborative model that
benefits a wide range of stakeholders. Pillarstone is a portfolio
company of certain funds and accounts managed or advised by KKR Credit.
The EBRD is a multilateral development bank, committed to furthering
progress towards market-oriented economies and the promotion of private
and entrepreneurial initiative in more
than 30 countries from Morocco to Mongolia and from Egypt to
Estonia. The EBRD is owned by 65 countries, EU and EIB. Follow us on
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