Thursday December 18, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Hope for Eurobank’s share capital increase

By Yiannis Papadoyiannis

The local credit sector is optimistic that Eurobank’s share capital increase, expected to come to 3 billion euros, will prove successful following the overbooking for the increases of Piraeus and Alpha earlier this week.

Main stakeholder the Hellenic Financial Stability Fund (HFSF) yesterday discussed the timetable for Eurobank’s capital increase, which will only go ahead on the condition that the necessary regulatory framework become laws, as expected, in the coming days. The plan that Eurobank’s administration has proposed provides for the increase to be completed within April.

With the economy on the path to recovery and the political risk concerning investors less and less, foreigners’ determination to invest in Greek risk is growing by the day. It is no coincidence that the offers for the Alpha and Piraeus increases by far exceeded the issue of shares and that this was in prices equal to or even higher than their current value.

Analysts say that the two lenders’ capital increases constitute important transactions that will have a major bearing on the determination of the price for the Eurobank increase. That means the issue price will be close to the current accounting value, which stands at 0.54 euros.

Still, Eurobank has a special feature: A large part of its accounting value concerns the benefit from its deferred tax assets, which is considered to be low-quality capital. If the contribution of the deferred tax assets is aligned to that of the other banks, then its accounting value would drop to 0.30 euros, according to analysts. Consequently the share issue will have a price range between 0.25 and 0.35 euros, with the most likely scenario seeing it ending up at just over 0.30 euros.

In Eurobank’s case a discount would be justified both due to the size of the increase and to the relatively weaker capital base compared with those of Alpha and Piraeus. The question is what the interest of foreign investors will be at this price level.

Analysts say that if the increase takes place at a price around the accounting value, as the European Commission also desires, then the HFSF will only participate if there are any shares that are not bought by private investors. In such a case, and with the price at 0.30 euros, private sector participation would come to 65 percent, while the HFSF stake would decline from 95 percent today to just 35 percent.

ekathimerini.com , Thursday March 27, 2014 (23:01)  
German parliament supports extending Greece bailout
Greek bond yields fall after ´friendly´ Schaeuble comments
No risk of contagion from Greek vote, Italy´s FinMin says
German finmin says Greece in better shape than expected
Tsipras wants agreed solution with eurozone, not unilateral moves
Greece's radical leftist Syriza party will cancel austerity and ask Europe to erase a big chunk of Greek debt to free the country from the dark spell it has fallen under, leader Alexis Tsipr...
Austerity curbed human rights in Greece, report says
Austerity measures adopted as a result of the economic crisis have adversely impacted human rights, including the rights to work and health, noted a report released on Thursday by the Intern...
Inside News
BASKETBALL
Pappas helps Greens overcome Aris
An impressive Nikos Pappas averted an upset by Aris and ensured Panathinaikos retained its perfect record on Tuesday, one day after Olympiakos thrashed Panionios at Nea Smyrni for the Basket...
´Wee Jay´ and idol Georgios Samaras receive Greek sports journalists´ award at Athens gala
A 10-year-old Irish fan of Greek striker Georgios Samaras was in Athens on Monday at the invitation of the Greek Sports Journalists' Association, which honored outstanding achievements in sp...
Inside Sports
COMMENTARY
Europe´s drama in Greece needs final act to avoid tragedy
Judging from Wednesday's vote in the Greek parliament, Prime Minister Antonis Samaras may not get the mandate he wants to keep economic austerity measures in place and avoid defaulting on th...
COMMENTARY
A pointless battle
The public closely watched the first act in the three-part drama of Parliament’s election of a new president yesterday. The result was below the expectations of the New Democracy-PASOK coali...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras wants agreed solution with eurozone, not unilateral moves
2. German parliament supports extending Greece bailout
3. Greek bond yields fall after ´friendly´ Schaeuble comments
4. No risk of contagion from Greek vote, Italy´s FinMin says
5. Austerity curbed human rights in Greece, report says
6. German finmin says Greece in better shape than expected
more news
Today
This Week
1. Europe's drama in Greece needs final act to avoid tragedy
2. Election looms as Samaras fails to win vote for president
3. Kammenos maintains firm position, says general election is 'one-way street'
4. What SYRIZA says about Greece’s economy, its debt and the euro
5. Merkel says Russia sanctions to remain unless Putin yields; Greece's prospects 'better than two years ago'
6. Eurozone bond yields fall as 'patient' Fed pleases investors
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. East Europe scrambles for energy after Putin kills South Stream
6. Anarchist Nikos Romanos ends hunger strike
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.