Wednesday August 27, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek banks’ capital increases signal end to isolation

By Nikos Chrysoloras & Eleni Chrepa

Alpha Bank SA and Piraeus Bank SA (TPEIR) raised 2.95 billion euros ($4.07 billion) in new capital from foreign investors in the latest sign Greek lenders are bouncing back from the world’s biggest sovereign debt crisis that pushed them into isolation from international money markets.

“We have a bull market,” Dimitris Giannoulis, co-founder of ResearchGreece, an independent research provider based in Cyprus, said by phone. “The enormous demand and oversubscription show that there is huge interest in Greek banking stocks. Those that believe in the recovery story are more than those that don’t.”

Piraeus Bank, Greece’s second-biggest lender, said today that it will raise 1.75 billion euros of capital after placing 1.03 billion new ordinary shares at 1.70 euros each. Alpha (ALPHA) Bank, Greece’s fourth-largest by assets, said yesterday it also had enough demand for a capital increase of 1.2 billion euros. It will price the sale of new shares at 65 euro cents apiece. Shareholders for both banks will be asked to approve the transactions on Friday.

Piraeus shares closed down 5.9 percent in Athens on the news of the capital increase as new shares will be offered at 1.70 euros, while the shares closed at 2.02 euros on March 24, the last day of trading before the book opened. Alpha, which announced the results of its own book-building yesterday, was up 4.3 percent.

“International investors offered about 5.5 billion euros for both banks,” Piraeus President Michalis Sallas said in a statement issued after the announcement of the book-building result. “We believe that both capital raises are of historical importance for the Greek banking market and will contribute significantly to the recovery effort of the Greek economy.”

Greek lenders need to boost their capital by 6.38 billion euros, the nation’s central bank said this month as it released the results of an asset-quality review and a stress test conducted by BlackRock Inc., the world’s largest money manager.

Officials from the European Commission, the European Central Bank and the International Monetary Fund, which financed Greece’s bailout, said in a statement last week that the bill may be even bigger if the country’s banks don’t “urgently and efficiently address” swelling bad loans in their books.

[Bloomberg]

ekathimerini.com , Wednesday March 26, 2014 (18:01)  
Draghi soothes bond market after summer of strife
New property tax details out
Minister takes up SMEs’ cause
Tender for telecoms upgrade near
ND honorary president taken to hospital
Former honorary president of New Democracy, former Prime Minister Constantinos Mitsotakis was being treated for a respiratory infection at a hospital in Hania, Crete, on Wednesday. According...
Venizelos hails Gaza ceasefire
Deputy Prime Minister and Foreign Minister Evangelos Venizelos on Wednesday hailed the announcement of a ceasefire between Israel and the Palestinians brokered in Cairo, Egypt, late on Tuesd...
Inside News
SOCCER
Roma signs Greece defender Manolas from Olympiakos for 13 mln
Greece international Kostas Manolas has joined Roma on a €13 million ($17 million) transfer from Olympiakos, as coach Rudi Garcia looks to strengthen his worrisome defense before Serie A sta...
SOCCER
Panathinaikos held in Super League opener, loses striker Berg to injury
Panathinaikos suffered a traumatic debut in the Super League on Sunday as they were held to a 1-1 draw by Levadiakos and lost star striker Marcus Berg for up to three months. The Swedish pla...
Inside Sports
COMMENTARY
Diplomacy, not dogmatism
A friend who moves comfortably within the circles of the European establishment recently described a particularly interesting experience when he found himself in a discussion behind closed d...
EDITORIAL
Preachers of hatred
Engaging in public dialogue regarding whether the anti-racism bill is mandatory and sensible is both legitimate and necessary at this current point in time. In the meantime, however, regardl...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. ND honorary president taken to hospital
2. Venizelos hails Gaza ceasefire
3. Draghi soothes bond market after summer of strife
4. ND gains one deputy as ousted MP sworn in Lamia mayor
5. New property tax details out
6. Minister takes up SMEs’ cause
more news
Today
This Week
1. ND gains one deputy as ousted MP sworn in Lamia mayor
2. Draghi soothes bond market after summer of strife
3. Venizelos hails Gaza ceasefire
4. ND honorary president taken to hospital
5. The battle against progress
6. Taxpayers granted six installments to pay property tax
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Brussels warns Greece over plans to allow construction near Korinos beach
3. Logged out of reality
4. Merkel cites euro’s ‘construction flaws’ as economy sputters
5. Second man held over double murder in Mani
6. Greek stock recovery fading away as ASE falls 21 pct on valuations
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.