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, Alpha Bank and 22% of National Bank late in 2023, after Greece won back its investment grade credit rating, and 27% in Piraeus Bank 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.
Source: Reuters.com