Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o 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)  
Cheap energy pulls down eurozone producer prices in July
Greece sells 1.14 bln euros of 6-month T-bills, yield eases
New committee formed to assess progress of deregulation in closed-shop professions
Tourism targets rise ever higher
Reforms to dominate Greek talks in Paris, debt relief talks later, says source
Greece hopes to assuage concerns it is slipping up on reforms during talks with European and IMF inspectors in Paris this week, with debt relief talks unlikely to start until October, a seni...
Trial over 2013 murder of pawn merchant starts in Athens
The trial over the April 2013 murder of a 30-year-old man running a family-owned pawn shop in the suburb of Dafni began on Monday with the four defendants admitting to their role in the deat...
Inside News
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
SOCCER
Unlikely pair on the Super League summit
Veria and Atromitos are sitting pretty at the top of the Super League after the second round of games thanks to their away wins that made them the only clubs to have six points, as champion ...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the people’s favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cheap energy pulls down eurozone producer prices in July
2. Greece sells 1.14 bln euros of 6-month T-bills, yield eases
3. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
4. Greece defender Papadopoulos fires parting shot at Michel
5. Unlikely pair on the Super League summit
6. Trial over 2013 murder of pawn merchant starts in Athens
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Moderating expectations
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Trial over 2013 murder of pawn merchant starts in Athens
6. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.