Article
Piraeus Completes €2B SRT and Eyes Consumer Debut in 2026
Piraeus Bank finalized Ermis VIII, its latest significant risk transfer transaction, in late December 2025, referencing a €2 billion portfolio of performing Greek small and medium-sized enterprise and corporate loans. The deal utilized a direct-issue credit-linked note structure, mirroring the structural format of the previous Ermis VII transaction (2024), and, like that deal, was designed to achieve simple, transparent and standardized status.
The transaction features a placed first-loss tranche structure supported by a small synthetic excess spread, a feature designed to absorb initial losses before investor protection payments are triggered. Notes admitted to trading on the Vienna MTF revealed a €128.9 million portion of the risk stack. This note volume implies a tranche thickness of approximately 6.45%, representing a more capital-efficient structure than the 7.43% thickness observed in the preceding Ermis VII deal.
Additionally, sources indicate that Piraeus opted for a competitive placement process that attracted substantial interest from over 10 international institutional investors during the initial bidding phase, ultimately allowing the deal to price at a tighter credit spread than the previous year’s deal.
The execution supports the bank’s capital optimization strategy, which saw its pro forma CET1 ratio reach 14.6% as of September 2025. While the specific basis point impact for Ermis VIII has not been explicitly disclosed, the Ermis VII deal resulted in a reduction of risk-weighted assets by €0.9 billion, providing approximately 43 bps of capital relief.
For 2026, Piraeus has outlined an active issuance pipeline as it seeks to diversify the asset classes within its SRT programs. The bank is targeting a debut €500 million consumer loan SRT for execution in the second or third quarter of 2026, marking a strategic shift toward retail assets. Additionally, management is evaluating a potential transaction tied to its shipping loan book, alongside a traditional year-end SME and corporate trade to maintain its existing risk transfer position.
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