Alpha Bank Recap (IFC-37788)

Regions
  • Europe and Central Asia
Where the impacts of the investment may be experienced.
Countries
  • Greece
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 25, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ALPHA BANK A.E.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 65.80 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 60.00 million
Converted using 2015-12-25 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 31, 2018

Disclosed by Bank Nov 24, 2015


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

This project finances an equity investment in Alpha Bank A.E. to support its recapitalization by participating in a private placement in the form of an Accelerated Bookbuilding, which is the systematic process of generating, capturing, and recording investor demand for shares during an initial public offering.

Investment Description
  • International Finance Corporation (IFC)

The project consists of a straight equity investment by IFC of EUR60 million in Alpha Bank A.E. Founded in 1879 by the Costopoulos family, Alpha Bank is the oldest banking group in Greece and the second largest with a market share of 23% by customer loans. It offers a complete range of banking services, including retail, SME and corporate banking, as well as wealth management. The Bank’s international footprint includes five SEE markets (Romania, Cyprus, Serbia, Albania and FYROM) with approximately 85% of the business concentrated in Romania and Cyprus where Alpha Bank enjoys a strong position. As of September 30, 2015, Alpha Bank had total assets of €69.8 billion, total customer deposits of €30.5 billion and total net loans of €47.0 billion. The Bank’s Common Equity Tier I ratio as of the same date was 12.5% (fully-loaded 11.8%). Alpha Bank is listed on the Athens Stock Exchange and prior to the ABB was owned 66% by the Hellenic Financial Stability Fund (“HFSF”), 25% by institutional investors, 8% by private investors, and 1% by the founding family. Following the offering, HFSF’s stake is expected to decrease to below 15%.

Private Actors

Founded in 1879 by the Costopoulos family, Alpha Bank is the oldest banking group in Greece and the second largest with a market share of 23% by customer loans. It offers a complete range of banking services, including retail, SME and corporate banking, as well as wealth management. The Bank’s international footprint includes five SEE markets (Romania, Cyprus, Serbia, Albania and FYROM) with approximately 85% of the business concentrated in Romania and Cyprus where Alpha Bank enjoys a strong position. As of September 30, 2015, Alpha Bank had total assets of €69.8 billion, total customer deposits of €30.5 billion and total net loans of €47.0 billion. The Bank’s Common Equity Tier I ratio as of the same date was 12.5% (fully-loaded 11.8%).

Contact Information

*No contacts available*

ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/