Tuesday May 26, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Alpha Bank sale said covered

Alpha Bank has enough demand for all its stock as the Greek lender joined Piraeus Bank in selling 3 billion euros in shares to bolster capital, two people with knowledge of the matter said.

Investors that bid below 65 euro cents apiece for Alpha Bank shares may not receive stock, the people said, asking not to be identified as the details aren’t public. The sale was set to close for investors at 10 a.m. in London.

Piraeus Bank, the country’s second-largest lender, said in a statement on Monday it plans to raise 1.75 billion euros and Alpha Bank is targeting 1.2 billion euros from new shares.

The sales represent “a vote of confidence for the Greek banking system,” Maria Kanellopoulou, a financial analyst at Euroxx Securities SA, said in an interview. “Major progress has been achieved, especially for those two banks.”

Investors are returning to Greece as it makes a comeback from an international bailout that roiled world markets. Greek lenders need to boost their capital by 6.38 billion euros after six years of recession and the biggest sovereign-debt restructuring in history left them with swelling bad loans, the nation’s central bank said this month.

Alpha, Piraeus and National Bank of Greece SA, the nation’s largest lender, were able to attract sufficient funds from private investors in stock sales in June to enable them to avert complete nationalization.

Yields on 10-year Greek government benchmark bonds were unchanged at 6.72 percent, near a four-year low on Tuesday in Athens. Borrowers are taking advantage of demand for riskier debt as central banks hold interest rates at record lows and as Standard & Poor’s says default rates will fall to 5.2 percent next year from 5.9 percent at the end of 2013.

Greek banks may need more capital than the Bank of Greece stress tests suggest, especially if they don’t “urgently and efficiently address” the high levels of non-performing loans, European and International Monetary Fund officials said on March 20 as they reached a preliminary agreement to unblock money under the Mediterranean nation’s bailout.

Greek banks are tapping investors before a wave of fund raisings by European lenders including Italy’s Banco Popolare SC and Banca Monte dei Paschi di Siena SpA. The European Central Bank review of the region’s top lenders, as it prepares to resume oversight later this year, is prompting banks to clean up their balance sheets, renewing confidence among investors. The Bloomberg Europe 500 Banks and Financial Services Index, which tracks 43 companies including Alpha and Piraeus, gained 18 percent in the past year, outpacing gains by the broader market.

Still, some investors question whether some banks’ valuations are justified by the outlook for earnings.

“The market has made a quantum leap of faith and has moved from fearfully monitoring asset quality, capital and funding on a quarterly basis to focus exclusively on ‘normalized’ 2016-2017 earnings,” said Inigo Lecubarri, who helps manage the Abaco Financials Fund in London. “We believe investors’ desire to rotate into underperforming assets such as European bank stocks is the force behind the rally, not fundamentals.”

JPMorgan Chase & Co. and Citigroup Inc. are managing the Alpha Bank capital increase, along with Bank of America Corp., according to a statement from the sale managers. Piraeus Bank said Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., Mediobanca SpA and UBS AG are among banks overseeing its sale.

[Bloomberg]

ekathimerini.com , Tuesday March 25, 2014 (13:17)  
Third-country tourists posted major increase up to 2014
Firms write off a tenth of turnover in bad debts
Counter-incentives against early retirement
Halt in payments stifles market
Ranks of civil service shrink, but not for long
The size of the Greek civil service dipped in the first quarter of the year, continuing the downward trend that started in 2009, but it is expected to grow again, as the government has pledg...
Debt talks resume amid concerns over differences, looming repayment, political upheaval
Government officials on Monday expressed confidence that Greece was close to a deal with creditors that would allow loans to be unlocked but pressure is growing on Prime Minister Alexis Tsip...
Inside News
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
SOCCER
Reds add Cup to league trophy with 3-1 win over Xanthi
Olympiakos completed a league-and-cup double on Saturday by beating Xanthi 3-1 in the Greek Cup final at the Olympic Stadium of Athens, that was more balanced than the final score suggests. ...
Inside Sports
COMMENTARY
Greece needs a second election
Most scenarios facing Greece are bleak. The country could default, introduce capital controls, forcibly convert savers’ deposits into bank capital, quit the euro and so forth. But there is s...
COMMENTARY
No more ´quick and dirty´ fixes for Greece
International Monetary Fund Managing Director Christine Lagarde correctly said last week that the protracted negotiations between Greece and its official creditors required «a comprehensive ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Third-country tourists posted major increase up to 2014
2. Firms write off a tenth of turnover in bad debts
3. Counter-incentives against early retirement
4. Halt in payments stifles market
5. Ranks of civil service shrink, but not for long
6. Debt talks resume amid concerns over differences, looming repayment, political upheaval
more news
Today
This Week
1. No more 'quick and dirty' fixes for Greece
2. ND's Bakoyannis fears capital controls over long weekend
3. Brussels Group talks to resume Tuesday with VAT, pension topping agenda
4. Greece calls on creditors to compromise as IMF payment nears
5. Greece needs a second election
6. Tourist dies in rockfall on beach in Crete
Today
This Week
1. Conspiracy madness
2. National self-awareness put to the test
3. Albanian demarche raises concerns about possible territorial claims over Greece
4. Why Greece won't hold referendum on reforms
5. Greek endgame nears for Tsipras as bank collateral hits buffers
6. Hotel contracts with a ‘Greek default clause’
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.