GREECE’S Alpha Bank plans to securitize about 1 billion euros (US$1.4 billion) of shipping loans this summer, in one of the first European asset-backed deals in this industry for years, a banker with Alpha Bank and another finance industry source said Friday.

    Europe’s asset-backed market has still not recovered from the financial crisis of 2008-2009, but the European Central Bank (ECB) and Bank of England have both said they want it to revive to help provide money for credit-starved businesses and revitalize the region’s economy.

    The sources told Reuters that Alpha Bank, Greece’s fourth-largest lender, expects to raise about 500 million euros in the transaction, which bundles together a series of individual shipping loans and which one source familiar with the deal said would be mainly arranged by U.S. bank Citi.

    “We are working on a plan to securitize about 1 billion euros worth of shipping portfolio loans, aiming to conclude the deal in the summer,” the senior Alpha banker said separately, declining to be named.

    “The securitization will get us funding of about 500 million euros. The bonds will have a five-year maturity and will be privately placed,” the banker added.

    The Alpha banker said the money raised would help the bank funnel liquidity into new loans and support the Greek economy.

    “Greek banks are trying to access the international capital markets and I suspect given that interest rates are low and yield investors are looking for such products, it is a good idea from them to consider such products,” an industry source said.

    The deal also represents part of efforts by industry players to seek ways to raise money to plug a multi-billion dollar funding gap caused by several European banks exiting the shipping sector.(SD-Agencies)