Hellenic Bank raises €201 million from rights issue, increases CET1 ratio to 12.8%

Hellenic Bank raises €201 million from rights issue, increases CET1 ratio to 12.8%

Hellenic Bank raised €201 million in the first phase of its capital increase, covering the €105 million capital shortfall that emerged from the ECB`s stress test with a significant margin.

Following the capital raise, the Hellenic Bank`s Common Equity Tier 1 ratio increased to 12.8%.

“The €201 million raised in phase 1 of the capital increase more than covers the capital need of €105 million resulting from the “Adverse Scenario” of the Comprehensive Assessment of the European Central Bank and the European Banking Authority, based on the Asset Quality Review and the Stress Tests, and further enhances its capital base,” Hellenic Bank said in a press release.

The bank notes that by completing phase 1 of the Bank’s Rights Issue, through the Subscription and the Presubscription phase, the Group’s Common Equity Tier 1 Ratio, pro forma 30 September 2014 following the conversion of the Contingent Convertible Securities 1 into shares becomes 12.8%, which significantly exceeds the corresponding minimum regulatory ratio.

Furthermore, the Board of Directors has the right to raise additional €20 million of capital that corresponds to unexercised rights not allotted through the Presubscription phase before the end of January 2015, if deemed necessary.

“The Group success is remarkable as it is achieved in the adverse and challenging economic environment,” the Bank noted adding that “the three major shareholders of the Bank, Wargaming Public Company Ltd, Third Point Hellenic Recovery Fund L.P. and Demetra Investments Ltd, have fully supported the Rights Issue, reconfirming both their confidence in and their commitment to the Group.”

“The Group, without any exposure in the European Liquidity Assistance (ELA) and any dependency in the European Central Bank, with a strong balance sheet and capital base, ample liquidity and the depositors’ and shareholders’ confidence, is able to take advantage of the business opportunities and to further expand its customer base and market share,” the Bank concluded.