Greece plans to start stake sale in Piraeus Bank by March - sources

CrediaBank SA

15/01/2024 08:32

ATHENS, Jan 15 (Reuters) - Greece's bank bailout fund
will start a process to sell a stake in Piraeus Bank  BOPr.AT ,
the country's third largest lender, by March, two sources
familiar with the matter told Reuters on Monday.
    It's the third such sale since October from the state-
controlled Hellenic Financial Stability Fund (HFSF), which was
set up to recapitalise Greek banks during the country's
decade-long financial crisis which ended in 2018.
    HFSF holds 27% in Piraeus Bank, with a market value of 4.37
billion euros ($4.79 billion), and has yet to decide whether to
sell all or part of its shareholding.
    "The plan is for the sale to take place at the end of
February or early March," a banker with knowledge of the matter
told Reuters.
    "There is no final decision yet on the stake. It might be
17%-18% or the whole stake," he added.    
    A second source involved in the process said that it would
likely be a combined sale to retail and institutional investors.
    HFSF has mandated BofA as an advisor on its stake.
    After injecting about 50 billion euros into the sector, HFSF
started reducing its participation in four major Greek banks
last autumn as part of its divestment from the lenders which
have been recovering.
    Greek banks are expected to post strong profits for 2023 and
2024 and hope to start paying dividends in 2024 for the first
time since 2010, when the Greek debt crisis erupted.
    Greek bank shares  .FTATBNK  have gained 7% since the start
of the year after a 67% jump in 2023, benefiting from the
country's strong growth and its recent credit rating upgrade to
investment grade.
    HFSF sold a 20% stake in National Bank  NBGr.AT  and a 9.4%
stake in Alpha Bank in November. 
    
($1 = 0.9122 euros)

 (Reporting by Lefteris Papadimas, additional reporting Renee
Maltezou; Editing by Emelia Sithole-Matarise)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))