Friday, 7 March 2014 - 10:12 Piraeus Bank announced share capital increase and a bond issue
According to an official announcement, Piraeus Bank BoD decided to call an EGM on March 28 to approve a capital increase of up to Eur1.75 bn through a non pre-emptive issue of new common shares in cash and to give to the BoD the authorization to determine the timing, the specific terms of the issue and the size of the capital increase.
The transaction is expected to be launched and completed in April. The issue is expected to be executed by means of a book building to institutional and selected investors abroad and a public offering in Greece. Piraeus will also consider the possibility of offering preferential allocations of new shares to existing shareholders and warrant holders, to the extent allowed by the regulatory framework.
The capital issue is aimed at the following:
a) meet the capital needs of Eur425 mn (Baseline) and Eur757 mn (Adverse); b) repay in full the Eur750 mn govt preference shares, subject to regulatory approvals; c) strengthen the bank΄s capital position, with a Basel III fully loaded pro-forma (for the capital increase and the repayment of prefs) end-2013 Core Tier I of c12%; d) facilitate access to the funding markets; and e) increase of the free float of the bank (from 19% currently).
Moreover and according to an announcement, Piraeus Bank has mandated BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs and HSBC to arrange a series of fixed Income investor meetings in selected European cities commencing next week. A EUR senior unsecured transaction may follow, subject to market conditions.
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