Marfin Popular Bank said late Monday that its board of directors will convene on November 11th to discuss an 488.6 million Euro rights issue, proposed by the Executive Committee.
In a research note, Citi says that it hasn’t been disclosed if the transaction has been subscribed by any investment bank, while the stated aims for the raising are to strengthen the bank’s capital position ahead of Basel 3 requirements and to strengthen it for expansion.
The new shares will be issued at a ratio of 1 right for every 2 shares held at a price of €1.00 per share. In addition, the executive committee will propose the issuance of €660 million in convertible securities (minimum conversion price of €1.80 per share). The convertible will be issued before the end of 2011 to selected investors.
“Post the €489 million capital raising, the pro-forma 2Q10 Tier 1 ratio should be 11.6%, up c175 bps. The Basel 3 regulatory impact for Marfin should be at a minimum given the small amount of minorities and DTAs in their books,” the brokerage says.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
