Alpha Bank Recap (IFC-37788)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Greece
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 25, 2015
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ALPHA BANK A.E.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 65.80 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
Here you can find a list of individual development financial institutions that finance the project.

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%.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*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/

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How it works