Alior Bank SA signed an agreement with the European Investment Fund and the European Investment Bank for the securitization of a business loan portfolio of up to 1.5 billion Polish zlotys.
The synthetic securitization deal is the first transaction of this type in Poland to be carried out in line with the European Capital Requirements Regulation. The Polish lender estimates the transaction will boost its Tier 1 capital ratio by 26 basis points, improving its prospects for a dividend payout from its 2019 profit.
The transaction, supported by the EIB as part of the "Juncker Plan," also known as the Investment Plan for Europe, will also expand Alior's capacity to lend to small and medium-sized enterprises on favorable financial terms, the bank said Dec. 10.
The deal is divided into junior, mezzanine and senior tranches. The junior tranche risk will be assigned to Alior, while the mezzanine and senior tranche risks will be transferred to the EIF and the EIB, with the latter also acting as the counter-guarantor of the deal.
As of Dec. 10, US$1 was equivalent to 3.78 Polish zlotys.