UPDATE 1-Greek bank NBG's rights issue oversubscribed
12:00am GMT+0200
Tue Oct 12, 2010 6:47am EDT
* Raises 1.8 bln euros by selling shares, convertible bonds
* Rights issue oversubscribed 1.83 times
* Analysts say positive news for banking sector
* NBG shares up 0.6 pct, outpace Greek bank sector
(adds details, analyst)
ATHENS, Oct 12 (Reuters) -
Greece's largest lender, National Bank (
NBGr.AT), successfully tapped markets with a 1.8 billion euro ($2.5 billion) combined rights issue which was covered 1.83 times, welcome news for the country's battered financial sector.
Shut out from wholesale funding markets, Greek banks have been hurt by the country's debt crisis, with their bond portfolios hit by successive sovereign credit rating downgrades.
A continuing deposit drain has further exacerbated their liquidity squeeze.
NBG (
NBG.N) boosted its capital to have more of a cushion to cope with a recession at home and a liquidity quagmire that has forced Greek banks to rely on the ECB for funding.
"For the combined offering of the new shares and the convertible equity notes 3,315,704,345 euros were offered vis-a-vis 1,815,054,306 euros that related to the new shares and convertible equity notes offered, corresponding to a 1.83 oversubscription rate," the bank said in a statement on Tuesday.
Analysts said the news was positive for the hard-hit Greek banking sector. NBG shares traded up 0.6 percent at 8.10 euros at 1043 GMT. The Greek banking sector .FTATBNK firmed 0.1 percent.
"It is a positive thing, it means there is investor confidence in NBG in particular, which may spread to the banking sector in general," said Nikos Galousis at Kappa Securities.
"This confidence of investors will facilitate a return to the wholesale market. If National Bank goes back to the interbank market, then possibly other banks can do the same at a later stage," he added.
The group offered 121.4 million new shares at 5.2 euros each on a one-for-five basis to raise 631 million euros. It raised another 1.184 billion euros via a rights offering of equity notes, convertible into common shares also at 5.2 euros each, at a ratio of three-for-eight.
Subscriptions for the rights issue ended on Oct. 11.
The bank's cash call, coupled with a planned sale of a 20 percent stake in its Turkish cash cow Finansbank, is expected to fetch a total of 2.8 billion euros, boosting its capital adequacy ratios.
NBG can use part of the proceeds to repay 350 million euros of preferred shares it sold the government under a previous liquidity support plan and boost the confidence of funding counterparties and depositors. Its move may prompt domestic rivals to follow suit.
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Già anticipato ieri dalle agenzie di stampa: un altro tassello va a completare il mosaico.
Sembra essersi rallentata se non fermata (momentaneamente???) la spinta propulsiva del 2019 6%: nel dubbio alleggerito ancora poco fa 78,73.
OK, allora stop agli alleggerimenti oggi.
