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Piraeus shareholders approve €1.75 bln cap increase

31 March, 2014

Ordinary and preference shareholders of Piraeus Bank have approved a share capital increase with the aim to raise €1.75 bln from the issue of 1.03 bln shares at 1.70 euros each, within the first ten days of April.
The bank said in an announcement that the equity offering is implemented through an international book-building process outside Greece to qualified and other eligible investors and through a public offering in Greece.
After the capital increase, the government stake is expected to be reduced drastically, while boosting the bank’s EBA Core Tier 1 capital to €9.9 bln. Thus, the Core Tier 1 ratio I expected to reach the very high level of 16.8 % (pro-forma).
The bank said the aim of the capital increase was to strengthen its capital base and contribute from a stronger position in the faster recovery of the Greek economy and to facilitate access to funding markets and further improve its perception among its customers.
It will also allow to repay in full the outstanding principal amount of €750 mln of the special preference shares, expanding private shareholder participation and increasing the free float of ordinary shares, a vital step towards the privatisation process.
Credit Suisse Securities (Europe), Deutsche Bank AG London Branch and Goldman Sachs International acted as joint global coordinators and joint bookrunners, while Mediobanca-Banca di Credito Finanziario S.p.A. and UBS acted as joint bookrunners for the equity offering. BNP Paribas acted as co-lead manager in each case in connection with the international book-building process.