Alpha Bank Α.Ε. (“Alpha Bank”) and Eurobank Ergasias S.A. (“Eurobank”) announce that they have concluded a definitive agreement regarding the acquisition of the operations of Alpha Bank’s Bulgarian Branch (“Branch”) by Eurobank’s subsidiary in Bulgaria, Eurobank Bulgaria AD (“Postbank”) (the “Transaction”).

Following the signing of the preliminary agreement on July 17 2015, Alpha Bank and Eurobank announce that they have concluded a definitive agreement with regard to the Transaction. Under such agreement, Eurobank’s subsidiary in Bulgaria will acquire the entire banking operations of the Bulgarian Branch, which, as of 30.9.2015 consisted of €464m of assets (of which €307m of net loans) and €261m customer deposits as well as a retail branch network of 82 units.

The Transaction is fully aligned with the respective restructuring plans of Alpha Bank and Eurobank as approved by the European Commission in 2014.

The acquisition of the Branch constitutes a step forward for Postbank to further strengthen its position in the Bulgarian banking sector and expand its customer base in both the retail and business segments. After the completion of the Transaction, Postbank will be the fourth biggest Bulgarian bank in terms of deposits and loans.

Postbank is expected to benefit from significant synergies from the second year post completion of the acquisition, maintaining its strong capital ratios and substantial liquidity buffers. On a Group level, the Transaction is expected to marginally improve Eurobank’s capital ratios.

The Transaction is capital neutral for Alpha Bank, and is fully aligned with its corporate strategy of divesting from non-core markets.

Completion of the Transaction is subject to approvals by the relevant competent regulatory and supervisory authorities and is expected to take place during the 1st quarter of 2016.

Mediobanca advised Eurobank while Citigroup advised Alpha Bank on the Transaction.

Important note: This release contains certain forward-looking statements. These forward-looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Due to these uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Eurobank Ergasias and Alpha Bank disclaim any obligation to update any forward-looking statements contained in this announcement, except as required pursuant to applicable law.