Eurobank’s NPL Transaction

Milbank LLP advised Eurobank Ergasias S.A. (“Eurobank”) on the sale of a 80% stake in its non-performing servicing subsidiary Eurobank FPS Loans and Credits Claim Management Company S.A. (“FPS”) to doValue S.p.A. (“doValue”), the leading operator in Southern Europe in credit management and real estate services for banks and investors.

The transaction included the negotiation of a 10-year servicing contract with FPS for the servicing of €5.6 billion of Eurobank’s NPE and Euro €5.7 billion of Eurobank’s retail early arrears, as well as any future production, and the related shareholder arrangement governing the parties’ ongoing strategic relationship as shareholders of FPS. In addition, the parties agreed on the sale of a portion of Mezzanine and Junior Securitization Notes of the Eurobank €7.5 billion multi-asset NPE Securitization.

Through this transaction, FPS will become the leading independent servicer in Greece, thanks to the existing platform and staff’s expertise coupled with doValue’s best-in-class practices and top servicing experience in Southern Europe (Italy, Iberia, Greece and Cyprus).

The Milbank team was led by Corporate partner Mark Stamp (Picture), European Leveraged Finance/Capital Markets partner Apostolos Gkoutzinis, corporate counsel Merih Altay, associates Sarah Ullathorne and James Mackay and Technology associate Faraaz Samadi.

Involved fees earner: Merih Altay – Milbank; Apostolos Gkoutzinis – Milbank; James Mackay – Milbank; Faraaz Samadi – Milbank; Mark Stamp – Milbank; Sarah Ullathorne – Milbank;

Law Firms: Milbank;

Clients: Eurobank Ergasias S.A.;