Pi­raeus aims to be first in line for cap­i­tal

Kathimerini English - - Front Page -

LON­DON (Reuters) – Pi­raeus Bank’s liability man­age­ment ex­er­cise launched this week should en­sure it is first in the queue of Greek in­sti­tu­tions rais­ing cap­i­tal once stress tests are com­pleted this month. Se­nior debt hold­ers will play a key part in the re­cap­i­tal­iza­tion. The bank on Thurs­day an­nounced an ex­change of­fer on 1.1 bil­lion eu­ros of its sub­or­di­nated and se­nior bonds, of which a to­tal 592 mil­lion re­mains out­stand­ing. In­vestors will have the op­tion of ex­chang­ing their hold­ings for either cash or shares. “It’s likely that all the Greek banks will need some cap­i­tal but there will only be a lim­ited pool of money. Pi­raeus is keen to cap­ture as much of that pool as pos­si­ble by be­ing ready ahead of the stress tests re­sults,” said a banker fa­mil­iar with the deal. In the first step of the of­fer, hold­ers of the 2017 se­nior, 2016 sub­or­di­nated and per­pet­ual hy­brid will have to de­cide if they will ac­cept so-called non-trans­fer­able re­ceipts (NTR). Pi­raeus is run­ning a con­sent so­lic­i­ta­tion along­side the of­fer which is struc­tured in a way so that re­cal­ci­trant hold­ers will par­tic­i­pate. “The con­sent takes time and in­vestors need no­tice so by do­ing it that way, every­thing will be ready for when Pi­raeus pub­lishes the eq­uity prospec­tus, as and when that is,” an­other banker close to the sit­u­a­tion said.

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