ECONOMY

Demand in NBG share capital hike shows confidence

Shares in the country’s largest lender, National Bank of Greece(NBG), outperformed yesterday after news that its combined rights issue and bond offering was oversubscribed 1.8 times. The cash call, worth 1.8 billion euros, along with the combined sale of a stake in its Turkish unit, Finansbank, will raise 2.8 billion euros to help the lender cope with the recession and prepare for possible participation in local merger activity. Shares in NBG yesterday added 1.12 percent to 8.14 euros, bringing gains in the last week to just over 10 percent, versus a 0.39 percent dip on the broader market. Analysts said that the news was positive for NBG, with investors showing confidence in the lender and the broader banking sector. Finance Minister Giorgos Papaconstantinou said yesterday the Greek state will participate in NBG’s capital boost. The bank is expected to hire advisers in the coming days to help it sell a minority stake in Finansbank.