Thursday March 5, 2015 Search
Weather | Athens
20o C
11o 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)  
ECB says willing to restore financing for Greek banks once deal is reached
Court blocks sale of luxury Astir seaside resort
Greece cannot rely on ECB to dodge funding crunch, Draghi says
ECB keeps rates unchanged as investors await QE details
Samaras says those wanting ND leadership change to speak out
New Democracy leader Antonis Samaras on Thursday expressed his willingness to stay on as party chief following the January 25 election which saw New Democracy losing out to leftist SYRIZA wh...
Kasidiaris refuses any involvement in Baltakos recording
Golden Dawn MP Ilias Kasidiaris on Thursday faced an investigative magistrate in a case involving the secret recording of a conversation with former cabinet secretary Panayiotis Baltakos, a ...
Inside News
SOCCER
Super League restarts, but behind closed doors
Deputy Minister for Sports Stavros Kontonis announced on Wednesday the resumption of the Super League this weekend after it was suspended last week following crowd trouble at the Athens derb...
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
Inside Sports
COMMENTARY
Greek-Turkish relations
There are other issues beyond those focusing on the economy that the government, formerly of the “Indignants” and currently adapting – willingly or unwillingly – to eurozone realities, is fa...
EDITORIAL
Government policy
The issue of irregular immigration is taking on serious dimensions on an international level, while in Greece it is bordering on crisis levels. The government’s duty is to handle the issue w...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Samaras says those wanting ND leadership change to speak out
2. ECB says willing to restore financing for Greek banks once deal is reached
3. Court blocks sale of luxury Astir seaside resort
4. Greece cannot rely on ECB to dodge funding crunch, Draghi says
5. ECB keeps rates unchanged as investors await QE details
6. Kasidiaris refuses any involvement in Baltakos recording
more news
Today
This Week
1. Greek-Turkish relations
2. Greece struggles to make debt math work amid bailout standoff
3. Greece seeks to plug its 'Bermuda Triangle' of lost taxes
4. Greece has backup plan if March bailout cash fails to arrive, says Varoufakis
5. Draghi details sought as ECB's QE plan poised to be fleshed out
6. Government policy
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Varoufakis to make six reform proposals at Monday's Eurogroup
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.