SEC approves HB prospectus on capital issue

The Securities and Exchange Commission approved the Hellenic Bank Pcl  second Supplementary Prospectus regarding the issue of up to CYP 37 mln of Series B of non-secured 2016 Debentures. The new Debentures will carry a quarterly interest rate and will be paid in cash to bondholders at the end of each quarter. The 2016 Debentures will carry a variable interest rate of 80 bps over LIBOR at the beginning of each quarter for the first five years, whilst for the remaining period (if not redeemed by the Bank) interest will be set at 150 bps over LIBOR. The Series B issue of 2016 Debentures will be part of the Bank’s Tier 2 Capital which will be used to strengthen the Group’s share capital base and to expand its operating activities. We have a Reduce recommendation for the stock.

 The CYP 38 mln Series A of non-secured 2016 Debentures have already been issued and the Debentures commenced trading on the CSE on 8 September 2006.