Attica Bank : sale of subordinated bond of securitized NPE portfolio to the investor and management of non-preforming loans

ANNOUNCEMENT, 26.10.2018

COMPLETION OF THE SALE OF SUBORDINATED BOND OF SECURITIZED NPE PORTFOLIO TO THE INVESTOR AND MANAGEMENT OF NON-PERFORMING LOANS

Attica Bank S.A., following its announcement dated July 25th 2018, informs investors that in fulfillment of the relevant agreements of the Ordinary General Meeting of 27.06.2018, the Transaction for the sale of the subordinated loan portfolio of the NPE's securitized portfolio to the Investor (i.e.TOCU Europe II, S.a.r.l.) has been completed as well as the management of the non-performing loans to a company of interest of the aforementioned investor, which has received the required approval from the BoG. Within this context, the Investor paid today in full the amount outstanding for the completion of the Transaction. More precisely:

(a) TOCU Europe II, S.a.r.l. based in Luxembourg and affiliated with the international investment company PIMCO, paid the amount of EUR 47 million for the transfer of the Junior Note that was issued under the securitization of the Transaction loans,

(b) The company affiliated with the investor under the name QQUANT MASTER SERVICER S.A. undertook the management of non-performing exposures amounting to € 700.5 million.

Following the completion of the Transaction and subject to the relevant approval by the competent authorities, Attica Bank may de-recognize the non-performing loan portfolio that has been securitized under the Transaction and book a gain of € 47 million, which will account as Tier I capital through the P & L in its capital.

In this transaction, Rothschild acted as advisor to the Bank. Milbank and Bahas, Gramatidis & Partners acted as legal advisors to the Bank.

The completion of this ground-breaking transaction which benefits the Bank and its shareholders, helps Attica Bank reduce its credit risk exposure and strengthen its capital basis in order to proceed to its next business movements.

ATTICA BANK S.A.