Greek lender Alpha Bank has reportedly received two bids for one of its bad loan books, which is said to worth nearly €10.6bn ($12.35bn).
Known as Galaxy, the loans portfolio consists of retail loans worth more than €7.6bn, Reuters reported.
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The portfolio also comprises loan worth €3bn provided to medium-sized and large corporate clients.
The country’s fourth-largest lender did not disclose the names of the companies from which it received the two binding bids.
According to the proposals, a possible transaction will also include a securitisation as well as the sale of the bank’s loan servicing platform Cepal.
Greece’s bank rescue fund Hellenic Financial Stability Fund (HFSF) owns an 11% stake in Alpha Bank.
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By GlobalDataHSFS intends to reduce the bank’s bad loan ratio to 13% of its total loan book.
Alpha Bank registered a profit of €97.5m in its second quarter of 2020, while its non-performing loans (NPL) stood at 30.2%.
Recent deals
Recently, Italian lender BMPS was looking to secure a €1.5bn ($1.8bn) capital injection to cover legal risks and bad loans, before its sale.
Meanwhile, Hungarian government-owned commercial lender Budapest Bank, MKB Bank and savings group Takarekbank (MTB) entered into a merger agreement.
Last month, Italy’s Intesa Sanpaolo acquired a 2.85% stake in digital payments group SIA from Banca Mediolanum.
