— Declares 8c dividend at 4% yield —
Marfin Popular Bank’s board has decided to issue capital securities of up to EUR 300 mln carrying an interest of 7%, while it also decided to pay out a dividend of 8 cents per share in cash. The total dividend represents 40% of the Group’s 2009 net profits, while the dividend yield is estimated at around 4%.
The board also approved a dividend reinvestment plan for shareholders, according to which the exercise price for the right of reinvestment of the 2009 dividend into shares will be 10% lower than the average closing price of Marfin Laiki’s share on the Cyprus Stock Exchange and Athens Stock Exchange on the first five days when the bank’s share will be quoted ex-dividend. More information about the dividend payment will be announced later.
CAPITAL SECURITIES
The bank’s board also approved the issue of capital securities of up to EUR 300 mln, with a nominal value of EUR 1,000 in one or more series, bearing a fixed interest rate of 7%. The rights and claims of the capital securities’ holders will be subordinated and will be of secondary priority compared to claims by creditors, including the bank depositors, but will have priority over the bank’s shareholders.
The capital securities issued will not have a maturity date, but may be acquired at the bank’s discretion, after approval by the Central Bank of Cyprus, in their entirety at their nominal value together with any accrued interest, five years after the date of issue or on any interest payment date after that.
The fixed interest rate of 7% will be paid every three months and will be initially offered to a limited group of individuals, professional investors and individuals who will invest at least EUR 50,000. At a later stage, they will be offered to the market through a public offer. The capital securities will be included in the Hybrid Tier I Capital, subject to approval of the Central Bank, and, therefore, will contribute to the further enhancement of the capital base of Marfin Popular Bank Group. Finally, the bank intends to apply for the listing of these securities on the CSE.
Finally, the submission of the petition to the District Court of Nicosia for the approval of the cross border merger and the setting of the starting date of its results is expected to take place during the first eight months of the current year. Therefore, the cross border merger, initially expected to be completed during the first quarter of 2010, is now expected to be completed by the end of 2010.
