ECONOMY

National Bank of Greece offers to buy back ADS shares

National Bank of Greece has launched an offer to buy back its US-listed ADS preference shares for a total of $281 million, it said on Friday.

The bank is offering to buy back up to 22.5 million American Depository Shares out of the 25 million outstanding for $12.50 each, at a 50 percent discount to their nominal value, an official at the bank said.

Each ADS corresponds to one preferred NBG share.

The buyback will boost the bank’s Core Tier 1 capital by 175 million euros if all of the securities are tendered, the official said.

The offer expires on June 28, with settlement expected on July 3.

NBG has not paid a dividend on its preferred shares since March 2011 and will not pay one for its 2012 fiscal year.

Bank of America Merrill Lynch will be the deal manager, NBG said.

[Reuters]