Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o 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)  
Tourism targets rise ever higher
Horse race betting hurdle removed for OPAP
Revised GDP data confirm that Greek growth is near
Measures to reduce unemployment
Education minister calls for probe into predecessor´s reform plan
Following reports that a plan to reform the tertiary education sector launched in the spring of 2013 failed to lead to millions of euros in savings, Education Minister Andreas Loverdos on Mo...
Anti-racism bill goes back to Parliament
An anti-racism bill, foreseeing stiffer penalties for individuals and political parties that engage in racism or incite racist violence, is to be debated in Parliament on Tuesday following m...
Inside News
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
ANALYSIS
EU’s three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Poland’s prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the country’s need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Don’t feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
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.