Sunday April 26, 2015 Search
Weather | Athens
14o C
09o 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)  
Construction material costs slide anew
Navios taps German shipping opportunities
Gov’t eyes state company reserves
Thessaly stores likely to remain closed on first Sunday of spring sales
Greek tax officers turn to small debtors for cash
As the country’s finances reach a critical point, tax authorities have started seizing the deposits of small debtors, Kathimerini understands. No figures were available regarding the new cra...
As European officials hint at ‘plan B,’ pressure grows on gov’t to compromise
As a deal between Greece and its creditors appears far from imminent, concerns mounted over the weekend over the country’s finances and its prospects within the eurozone as a US Federal Rese...
Inside News
WATER POLO
Olympiakos wins Euro crown in women´s water polo
The women’s water polo team of Olympiakos won its first ever LEN Euro League at the Final Four it hosted in Piraeus by beating holder Sabadell from Spain 10-9 in Saturday’s final. After defe...
SOCCER
Rival soccer fan clashes leave man stabbed
One man was stabbed and several others slightly injured as rival Thessaloniki club fans clashed late on Friday at an event held by Aris supporters. Reports from Greece’s second city stated t...
Inside Sports
COMMENTARY
Five years ago
This week marks five years since Greece officially entered a period of crisis when then Prime Minister George Papandreou announced that the country would seek a bailout from the eurozone and...
EDITORIAL
Slippery slope
The extremely divisive language that is currently being used by parliamentary deputies and coalition ministers is both unacceptable and dangerous. It is high time that the tired, old argumen...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Olympiakos wins Euro crown in women´s water polo
2. Greek tax officers turn to small debtors for cash
3. As European officials hint at ‘plan B,’ pressure grows on gov’t to compromise
4. FM warns against a lose-lose situation [Update]
5. PM tries to appease mayors, regional governors over cash bill
6. Border checks aim to stop jihadists
more news
Today
This Week
1. Five years ago
2. PM tries to appease mayors, regional governors over cash bill
3. Poll: Large majority of Greeks want compromise with lenders
4. FM warns against a lose-lose situation [Update]
5. Greece not playing a game of chicken on debt
6. Slippery slope
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Europe's collision course with Greece
3. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
4. Leaving the past in the past
5. Denialism
6. The price of compromise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.