An important milestone in Attica Bank’s path towards full consolidation and restructuring is expected to be achieved on Wednesday with the approval of the 735-million-euro share capital increase by the bank’s shareholders.
According to the schedule announced, the share capital increase is expected to be completed in October.
Sources with knowledge of this matter pointed out that, although there is a high investment interest in the share capital increase from third-party investors, Thrivest does not intend to dispose of its own share, as the strategic priority of the private investor is to ensure the absolute majority in the share capital of the merged bank. “The participation rates in the share capital increase have been locked,” sources close to the shareholder noted.
Upon the completion of the share capital increase, the State will own a percentage of at least 35% (from 72.5% today) while the private investor will have the absolute majority with a percentage of 50% plus one share up to 58.5%. In order to ensure the above percentages, the two main shareholders have committed through the Shareholders’ Agreement to contribute with funds amounting to 475 and up to 200 million euros, respectively.
What will it finance?
According to the plan submitted for approval by Attica Bank – and included in the relevant law – the funds raised will be used to ensure:
– Financing of the business plan of the merged bank
– Fulfillment of capital obligations towards the Supervisor
– Reduction of the non-performing loan ratio below 3%
– Increase in NPEs provision coverage ratio
– Meeting the requirements of the CET1 ratio
