Greece concludes post-crisis bank privatisations with 10% stake sale in National Bank (updated)

Piraeus Bank SA

03/10/2024 06:25

(Rewrites throughout, adds background, timing of share
allocation)
       ATHENS, Oct 3 (Reuters) - Greece concluded on Thursday
the re-privatisation of its lenders with the sale of a 10% stake
in National Bank (NBG) amid strong demand from investors,
sources said.
    The sale raised 690 million euros ($760.93 million), which
will be used to help Greece reduce its public debt, euro zone's
biggest as a percentage of economic output.
    The Greek state-controlled bank bailout fund HFSF sold 61.4
million shares in National Bank, Greece's second largest by
market value, for 7.55 euros per share, through a book-building
process and a public offer in Greece which ended on Wednesday.
     The valuation was at the middle of the initial pricing
indication of 7.3-7.95 euros a share.
    "There was strong demand from foreign and domestic investors
with the offering oversubscribed by 12 times," an official
involved in the process told Reuters on condition of anonymity.
    A second official confirmed the oversubscription and the
final price.
    HFSF, which was launched in 2010, began divesting its stakes
in Greece's four largest lenders last year after injecting about
50 billion euros to prop them up in return for shares during the
2009-2018 debt crisis.
    Following the sale, HFSF will transfer a remaining 8.4%
stake in National Bank to Greece's sovereign wealth fund.
    "Greek state will abolish any special rights that are vested
with the 8.4%," one of the officials said.
    HFSF sold its stakes in Eurobank  EURBr.AT , Alpha Bank
 ACBr.AT  and 22% of National Bank late in 2023, after Greece
won back its investment grade credit rating, and 27% in Piraeus
Bank  BOPr.AT  earlier this year. 
    The move was seen by investors as a sign of Greece's
economic recovery, although many ordinary Greeks are still
suffering the long-term effects of the crisis.
    Shares are likely to be allocated later on Thursday.
    
($1 = 0.9068 euros)

 (Reporting by Lefteris Papadimas; Editing by Kim Coghill)
 ((lefteris.papadimas@thomsonreuters.com; +30 6944 248134;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))