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ATHENS, Greece–(BUSINESS WIRE)–Piraeus Bank S.A. announces that it has entered into a strategic
partnership with Intrum for the management of Non Performing Exposures
(“NPE”) and Real Estate Owned Assets (“REOs”) through the establishment
of a market-leading independent non-performing assets servicing platform
in Greece (the “Transaction”).

The key components of the Transaction are:

− Piraeus Bank’s internal Recovery Banking Unit platform will be
transferred to a new servicer company; 80% of the new servicer company
will be held by Intrum and 20% by Piraeus Bank;

− The new servicer company will enter into a contract to service the
Bank’s existing €27bn NPE portfolio, together with any new inflows, on
an exclusive basis. The new servicer company will also manage NPE of
third parties. The initial term of the contract will be for ten years
and will include terms and conditions consistent with similar precedent
market transactions. The new servicer company will be licensed and
regulated by the Bank of Greece;

− A second servicer company will be formed, with the same shareholder
structure that will manage the Bank’s €1bn REOs, together with any new
flows. This company will also service REOs of third parties;

− George Georgakopoulos will assume the role of CEO of the new servicer

The platform is valued at €410mn with purchase price for Ιntrum’s share
at €328mn.

The transaction is scheduled to close on 1 October 2019.

“This Transaction is a milestone for Piraeus Bank in terms of its
de-risking strategy. We have found in Intrum the right long-term
industrial partner to proceed with this joint venture. The joint venture
will enable us to boost the efficiency and effectiveness of managing our
non-performing exposures. The new Piraeus Bank that will emerge post the
Transaction will be an agile and results-oriented organization. We will
focus on core banking activities and will continue catering to the needs
of our customers, shareholders and stakeholders”, Christos Megalou,
Piraeus Bank’s Chief Executive Officer, said.

The Transaction is contingent on customary conditions, regulatory
approvals and the consent of the Hellenic Financial Stability Fund

About Piraeus Bank

Piraeus Bank, founded in 1916, is the leading lender in Greece with a
29% loan market share, offering a full range of financial products and
services to more than 5mn customers. Total assets of the Group amounted
to €59bn, net loans to €38bn and customer deposits to €44bn on 31 March
2019. Piraeus Bank employees 12 thousand people in Greece and operates a
nationwide network of 548 units, ranking first in customer satisfaction
in the Greek market. In parallel, the Bank is at the forefront of
digitalization and innovation in Greece, catering for the needs of more
than 1.4mn customers in e-banking services. For more information on
Piraeus Bank:

About Intrum

Intrum is an industry-leading provider of credit management services
with a presence in 24 markets in Europe. Intrum helps companies prosper
by offering solutions designed to improve cash flows and long-term
profitability and by caring for their customers. To ensure that
individuals and companies get the support they need to become free from
debt is one important part of the company’s mission. Intrum has more
than 9,000 professionals who serve around 80,000 companies across
Europe. Intrum is headquartered in Stockholm, Sweden and the Intrum
shares are listed on the Nasdaq Stockholm exchange. For further
information, please visit


This announcement does not constitute or form part of, and should not be
construed as, an offer, solicitation or invitation to purchase,
subscribe for, or otherwise acquire, any securities.

This announcement contains forward-looking statements that are based on
current assumptions of the management of Piraeus Bank and Intrum.
However, there can be no assurance that forward-looking statements will
prove to be accurate, since known and unknown risks, uncertainties and
other important factors beyond their control could lead to material
differences between the forward-looking statements given here and the
actual development. Piraeus Bank and Intrum undertake no obligation to
update forward-looking statements or to conform them to future events or
developments if circumstances or management’s estimates or opinions
should change.


For Piraeus Bank
Andy Smith
+44 20 3328 9368