Filenews 15 November 2021
Signatures for the implementation of the Helix 3 agreement between PIMCO and the Bank of Cyprus, which achieves the Bank's highest objective of reducing NPLs to single digits (8.6%)
The signing of the agreement on the NPLs package, Helix 3, between the Bank of Cyprus and PIMCO leads the bank to achieve its biggest target. Specifically, today the Bank of Cyprus has implemented its largest target for the reduction of NBLs to single digits and is now turning a new page as noted by the CEO of the Bank of Cyprus. The reduction of NPLs to 8.6% will have a positive impact on the bank's capital as well as on Helix (1 and 2). The helix 3 sale agreement includes the sale of NPLs with a gross book value of €577m. and properties of €121 million.
The atmosphere in Agia Paraskevi has a festive character since they managed to close a cycle that began with the repayment of ELA and the accession to London.
The message of bank of Cyprus CEO Panicos Nikolaou to the staff is as follows:
"Dear colleagues,
Today we announce the signing of the agreement to sell Helix 3, by which the Bank achieves a single-digit NPVAble Loans (NPLs) ratio a year ahead of the guidance we gave to the market.
The signing of the transaction is an important milestone in our strategy to further reduce the risk on the Bank's balance sheet. We are approaching the end of a long and difficult journey that began in 2014. In this process, we reduced the total NWLs by €14.1 billion or 94% and the related ratio from 63% to 9%.
From today we can only look to the future.
For the past two years we have set new goals - the digital leaps that the Bank has started and continues to make, our new business model, the fairest reward to colleagues for their work, our environmental and social footprint. As of today we have eliminated the last distraction.
The sale agreement of Helix 3 includes the sale of NPLs with a gross book value of €577m. and properties of €121m. This transaction has a positive impact on both the Bank's capital and financial results, despite the difficult conditions of uncertainty prevailing due to the ongoing health crisis. In total, until completion, the transaction is expected to have an overall positive impact of 66 bps on the Group's Common Equity Tier 1 ratio and of approximately €21m. the income statement of the Group.
We are all deeply aware of our responsibility as a leader of our field, not to rest on our successes, but to continue to set goals that many consider impossible and to achieve them.
Thank you for your continued effort that allows the Bank to achieve even its greatest goals and become stronger in every subsequent move to support the progress of our country's economy."
