Greece’s Capital Markets Commission approved the proposed share capital increase of Attica Bank on Monday.
The bank will raise as much as €735 million, of which €475.1 million will come from the Hellenic Financial Stability Fund (HFSF). Up to €200 million will be raised through Thrivest Holding company, 47.9 million from Greece’s National Social Security Agency (EFKA) and 12 million from the Public Works Engineering Contractors Fund.
The news is not a surprise, but rather is part of Greece’s greater plan to complete the restructuring of its banking sector, which was crippled during the country’s financial debt crisis.
Details of the Share Capital Increase:
According the annoucement on the bank’s website, Attica Bank has announced a share capital increase of up to €17,973,468, offering up to 359,469,360 new common registered shares with voting rights at a nominal value of €0.05 per share and an offer price of €1.87 per share.
Existing shareholders have pre-emptive rights, allowing them to acquire new shares at a ratio of 677.42 new shares for every old share they hold.
Pre-emptive rights can be exercised between October 21 and November 4, 2024, with a trading period from October 21 to October 30, 2024.
If fully subscribed, the total proceeds of the share capital increase will amount to €672,207,703.20, with €654,234,235.20 credited to the Bank’s equity as share premium.
Additionally, up to 359,469,360 warrants will be issued, granting each warrant holder the right to acquire 3.5 new shares at a price of €0.05 per share.
Warrants will be issued without cost to investors who subscribe for new shares during the capital increase and apply for warrants. These warrants will not be traded, and if fully exercised, they would result in the issuance of up to 1,258,142,760 new shares, raising an additional €62,907,138.
Following full subscription and warrant exercise, the Bank’s share capital would increase to €80,907,138.20, divided into a total of 1,618,142,764 shares.
About Attica Bank
Attica Bank and Pancreta Bank merged in early September, to create the 5th largest bank in Greece, according to estimated assets.
The merger was applauded by the financial sector for the swiftness of the transaction, which came just weeks after the agreement by shareholders.
The capital increase will be used to repay a Tier 2 bond, of 100 million, issued by the Greek government, while 630 million euros will clean up the banks’ balance sheets and support the new entity’s growth.
