The shareholders of the National Bank have announced that they will convene on the 10th of May in order to decide upon increasing capital stock by 2.5 billon euros, by issuing new shares while abolishing pre-emption rights for existing shareholders.
Along with a further 1 billion euros which the bank hopes to yield from other efforts, the management will cover the National Bank’s capital needs, pay off premium state bonds and create an additional “safety net”. The latest rumors suggest the bank will issue a 5-year bond which it expects will generate 750 million euros.
With foreign interest for domestic titles being stronger the ever, the interest rate with which the National Bank Group will borrow money will be a rather pleasant surprise and an indication of the Greek credit sector’s improvement. The Financial Stability Fund has supported and voted in favor the capital increase.
Goldman Sachs International (GSI) and Morgan Stanley & Co International PLC (MS) will be the be global coordinators of the capital share increase.
