Greece’s Attica Bank Secures Approval for €735 Million Share Capital Increase
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Loading... - Maxim Sidorov
- 15 Oct 2024
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Attica Bank, a key player in Greece's banking sector, has received the green light from the Capital Markets Commission for a significant share capital increase aimed at raising €735 million. This move is part of Greece's broader strategy to restructure its banking sector, which faced severe challenges during the country's financial debt crisis.
The approved capital increase will see Attica Bank raising funds from several key sources, including €475.1 million from the Hellenic Financial Stability Fund (HFSF), up to €200 million from Thrivest Holding Company, €47.9 million from Greece’s National Social Security Agency (EFKA), and €12 million from the Public Works Engineering Contractors Fund. The bank plans to use these funds to repay a Tier 2 bond and support its growth initiatives.
According to the announcement on Attica Bank’s website, the share capital increase involves issuing up to 359,469,360 new common registered shares with voting rights. These shares will have a nominal value of €0.05 and an offer price of €1.87 per share. Existing shareholders will have pre-emptive rights to acquire new shares at a ratio of 677.42 new shares for every old share they hold. Pre-emptive rights can be exercised between October 21 and November 4, 2024, with a trading period from October 21 to October 30, 2024. If fully subscribed, the total proceeds from the share capital increase will amount to €672,207,703.20, with €654,234,235.20 credited to the bank’s equity as share premium.
In addition to the share capital increase, Attica Bank will issue up to 359,469,360 warrants. Each warrant holder will have the right to acquire 3.5 new shares at a price of €0.05 per share. These warrants will be issued at no cost to investors who subscribe for new shares during the capital increase and apply for warrants. Although the warrants will not be traded, if fully exercised, they could result in the issuance of up to 1,258,142,760 new shares, raising an additional €62,907,138. Following full subscription and warrant exercise, the bank’s share capital would increase to €80,907,138.20, divided into a total of 1,618,142,764 shares.
The capital increase is a strategic move to strengthen Attica Bank's financial position and support its growth following its recent merger with Pancreta Bank. This merger, completed in early September, created the fifth-largest bank in Greece by estimated assets. The swift execution of the merger was praised by the financial sector and is expected to enhance the bank's competitive position. The capital raised will be used to repay a €100 million Tier 2 bond issued by the Greek government and to clean up the bank's balance sheets, with €630 million earmarked for supporting the new entity's growth.
As Greece continues to recover from its financial crisis, the restructuring and strengthening of its banking sector remain crucial. Attica Bank's capital increase is a significant step in this direction, promising to bolster the bank's capabilities and contribute to the overall stability and growth of Greece's financial system.
