Cyprus Mail
Business

Hellenic launches capital raising shows, eyes more market share

The Athens Stock Exchange has been shut since June 29

By Stelios Orphanides

Hellenic Bank, which according to the European Central Bank’s asset quality review lacked €105 million in capital, embarked on a road show spree on Tuesday aiming at covering its capital shortfall and accumulating funds to further grow.

Hellenic’s “two major shareholders Third Point Hellenic Recovery Fund, L.P. and Wargaming Public Company Ltd are supportive of the issue and have each undertaken in a letter agreement to subscribe in full for the shares
corresponding to their rights at the exercise price,” the bank said in a statement on its website.

The lender aims at a capital increase with a €220 million rights issue, at a price of 0.0375 euros per share, the statement said. As each Third Point and Wargaming possess 20.32 per cent of total shares, the lender is now concentrated in securing around €130 million in remaining capital.

Any amount in excess of the €105 million capital shortfall that Hellenic will attract via the rights issue “will be used to further develop the bank,” a person with knowledge of the situation said on condition of anonymity. He added that Hellenic may consider buying loan packages from other banks and other assets in an attempt to expand its market share on the local market.

The capital increase must be concluded by December 31.


Related posts

Police officers cleared of recklessly killing suspect

Peter Michael

Law passed to regulate Airbnb rentals

Peter Michael

House condemns Turkish arms sales to Libya

Evie Andreou

Turkey announces new drilling, dismisses East Med Gas Forum initiative (Updated)

Evie Andreou

Archbishop back tracks over museum mansion

Evie Andreou

Sheer incompetence says Akel as hospital expansion deadline extended for 14th time

Gina Agapiou