Thursday Jul 31, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Share capital increases of National, Eurobank take their course

By Yiannis Papadoyiannis

The National Bank of Greece board is meeting on Tuesday to confirm the plan for the coverage of the lenders capital requirements and for its share capital increase. Sources say that the increase will amount to about 2.5 billion euros and be supplementary to the strategy for creating capital by the sale of assets.

Although the original plan was for the whole of the requirements i.e. 2.183 billion euros as determined by the Bank of Greece to be covered through the sale of subsidiaries and property assets, bank officials eventually decided to resort to the capital market too.

That change of strategy was due to the favorable investment climate thanks to the countrys return to a course of growth and its successful return to the bond market, the positive response by the institutional authorities and the favorable feedback by shareholders even though yesterday the banks shares gave up over 12 percent on news of the planned share capital increase. The banks administration therefore gave its nod for the increase, which will proceed immediately with help from Morgan Stanley and Credit Suisse. The increase will not only strengthen the NBG capital base decisively; it will also secure more time for the creation of capital through the sale of assets, thereby securing better terms as it will be under less pressure.

Eurobanks share capital increase has also taken its course, with its major shareholder, the Hellenic Financial Stability Fund (HFSF), reportedly determining the minimum share price at 0.30 euros for the process. Already Eurobank officials have traveled abroad to hold contacts with strategic investors, so that the increase can be completed by April 30.

The HFSF board convened on Monday to fix a minimum price after taking into account the reports drafted by Lazard and Morgan Stanley, its independent financial consultants. Sources say that their assessment was 10 percent below the minimum price the board decided.

This opens the way for the increase, worth 2.86 billion euros. Some of the banks senior official are now in London to speak to key investors as three investment groups have already expressed an interest in participating in a strategic fashion and are expected to reveal the amount of funds they are about to commit according to the price the HFSF has set.

The plan provides for 90 percent, or 2.57 billion euros, to be covered by strategic investors, and the rest from private and institutional investors from Greece.

ekathimerini.com , Monday April 14, 2014 (22:23)  
Traders unhappy with turnover
No rivals for Intralot as it bags racing bet permit
Energy cost cuts even without EU approval
KEPE: Greek economy returned to growth in Q2
Plan to restore Asopos River enters final stage
Plans are in the final stage for the ecological restoration of Asopos River in Central Greece following a deal to install an integrated water resources management system. The 37.6-million-eu...
Manolada shooting verdict to be reviewed
The Supreme Court is to review the decision by judges in Patra to acquit two of the four men charged over the shooting of 28 migrant workers at a strawberry farm in Nea Manolada last year. S...
Inside News
SOCCER
Goalless draw at Liege puts Greens in driving seat
Panathinaikos got the upper hand in the battle for entry to the Champions League playoffs after snatching a goalless draw at Standard Liege on Wednesday. If anything, the Greek cup holders m...
SOCCER
Greek league recruits former referee Dallas
Former referee Hugh Dallas has been appointed as the head referee of the Greek Super League, the Hellenic Football Federation (EPO) said in a statement on Wednesday. The 56-year-old Scot ear...
Inside Sports
COMMENTARY
Summer turbulence
High summer temperatures appear to have messed with the reflexes of officials at the top echelons of Greeces power-sharing administration. A sense of anxiety has gripped the political syste...
EDITORIAL
Capital upgrade
After years of financial troubles, the city of Athens is finally buzzing with tourists. Despite some encouraging figures however, the Greek capital has not quite managed to become a destinat...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Traders unhappy with turnover
2. No rivals for Intralot as it bags racing bet permit
3. Energy cost cuts even without EU approval
4. KEPE: Greek economy returned to growth in Q2
5. July becomes fourth straight month of bourse loss
6. Plan to restore Asopos River enters final stage
more news
Today
This Week
1. Motorists refusing to pay tolls on Corinth-Kalamata highway to be monitored
2. Euro flows reveal shift in sentiment as losses mount
3. Greece may ignore EU and lower energy costs for business, says minister
4. EU puzzles over emergency funds for euro area bank crisis agency
5. Only 5 percent of stores see brisker business during this year's summer sales
6. Fake psychic caught in Thessaloniki after gaining 35,000 from victim
Today
This Week
1. Quadriplegic woman on life support 'dies due to unpaid power bills'
2. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
3. Defense Minister Avramopoulos to represent Greece at European Commission
4. Wine cup used by Pericles found in grave north of Athens
5. Front-line threats
6. Worlds largest solar boat on Greek mission
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.