According to an official announcement, Piraeus Bank has agreed with private equity firm KKR to set up a structure whereby Piraeus will transfer and securitize a portfolio of assets to a new structure managed and/or controlled by KKR Credit and serviced by Piraeus.

The portfolio includes various clusters of domestic, international, performing and non-performing assets. The agreement provides for funds managed by KKR Credit to invest up to an additional €300 million in the portfolio companies and for KKR Credit to manage the portfolio for value enhancement. The transaction is expected to close in the first quarter of 2015 subject to conditions precedent, including regulatory and supervisory approvals having been obtained.

KKR is one of the world’s leading investment firms with $96.1 billion of assets under management. KKR has an unparalleled track record in investing globally and seeks to create value by bringing new long term capital, strategic focus and operational best practices to companies.

In connection with the Transaction, Anthimos Thomopoulos, CEO of Piraeus Bank said: “This agreement with KKR marks a new more dynamic approach in the management of the Bank’s debt and equity positions. As the largest domestic lender, we are considering a wide toolkit to optimize and maximize recovery from such positions. KKR brings an outstanding global track record and a wealth of experience in supporting companies and enhancing their value through investment of long term capital as well as operational and financial restructuring.”

Deutsche Bank AG, London Branch, Shearman & Sterling LLP and Koutalidis Law Firm act as advisers to Piraeus Bank in relation to the Transaction. KKR is advised by Weil, Gotshal and Manges and Karatzas & Partners Law Firm.