BUSINESS

Eurobank share offering on April 25-29

Greece's third largest lender Eurobank, which is issuing new shares to help plug a capital shortfall, said on Friday that the cash call will take place from April 25 to 29.

The transaction offers further evidence that overseas investors are warming to Greece's prospects of economic recovery, after the country last week returned to international bond markets for the first time since its sovereign default in 2012.

The country's bank rescue fund HFSF, which owns 95 percent of Eurobank, this week picked a group led by Canada's Fairfax as anchor investors in the bank's 2.86 billion-euro offering.

The group of investors, which also includes Capital Research and Management, Wilbur Ross, Fidelity, Mackenzie and Brookfield, committed to subscribe for 47 percent or 1.33 billion euros of the offering at 0.30 euros a share.

Eurobank, with a market value of 2.19 billion euros, became the latest major Greek lender to tap investors.

On Wednesday, National Bank of Greece (NBG), the nation's largest bank by assets, got the go-ahead from 84 percent shareholder HFSF for plans to raise up to 2.5 billion euros to boost its core capital.

Eurobank said on Friday that about 10 percent of the new shares will be offered to investors in Greece alongside the cash call to international investors.

[Reuters]

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