Cyprus Mail
Business

Hellenic recapitalisation successfully completed

Hellenic Bank also boasts the biggest number of 'green branches'

HELLENIC Bank successfully completed its recapitalisation through private funds on Friday after three major investors poured in €100 million, taking 75 per cent of the share capital.

Cyprus-based online game developer and publisher Wargaming Net and American hedge fund Third Point got a 30 per cent stake each by putting in €40 million apiece. Cypriot investment company Demetra received 15 per cent with €20 million.

The Church of Cyprus has a 27 per cent stake in the bank, but the shake-up would see its share shrink.

A due diligence of the banking system by investment firm Pimco had found that Hellenic needed some €294 million in extra equity to meet core capital adequacy requirements.

Hellenic fell short by some €36 million.

The lender had been given till end-October to meet the regulatory minimum 9 per cent core capital ratio by private means but was granted a one day extension by the troika in light of the ongoing negotiations.

On Friday morning, Archbishop Chrysostomos said the aim was for the bank to remain in Cypriot hands.

He rejected suggestions that it was fighting to retain its stake.

“I believe the effort will yield results and more than 36 million will be found,” Chrysostomos said.

The archibishop reiterated that the Church did not want one investor to gain control, especially the hedge fund.

“They go in to profit. Our aim is not profit. Our aim is to serve the people. Some may not believe it, it is their business, we don’t care,” Chrysostomos said, adding that he trusted Wargaming because they went back a few years and they were friendly.

 

 


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