Piraeus Bank announces the successful completion of the placement of Euro 1.25 billion in bonds by securitizing part of its residential mortgage portfolio. The issuer of the bonds is Estia Mortgage Finance II Plc, a special purpose entity established in the United Kingdom.
This is the second securitization after a similar one in 2005 and was aimed at differentiating and diversifying the funding sources of Piraeus Bank. Ratings for the bonds issued were provided by S&P, Moodys and Fitch, and the highest possible rating (AAA) was awarded to the Euro 1,137.50 million Class A tranche, bearing a coupon of Euribor + 16 bps.
The total orderbook reached over Euro 1.8 billion (1.5 times oversubscribed) and the final allocation was made to 40 institutional investors from 12 countries, with 95% of the issue going to international investors. The transaction was accompanied by a roadshow to the principal European financial centers.
UBS Investment Bank acted as Arranger for the transaction, and together with Barclays Capital as Joint Lead Manager, and DZ Bank AG was awarded the role of Co-Manager.