Sunday October 26, 2014 Search
Weather | Athens
17o C
13o 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 lender’s 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 country’s 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 bank’s shares gave up over 12 percent on news of the planned share capital increase. The bank’s 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.

Eurobank’s 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 bank’s 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)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Samaras pledges action after flash floods in Athens
3. Banks need to step up
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. No court hearings for civil cases
6. Nicosia says reforms are bringing results
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.