Greece sets terms for bank recapitalisation

ATHENS Mon Nov 12, 2012 8:46am EST

ATHENS Nov 12 (Reuters) - Greek banks will recapitalise themselves by issuing shares and convertible bonds and must meet a core Tier 1 capital adequacy ratio of at least 6 percent, the government decided on Monday.

The shares will be offered at a 50 percent discount from the average price over the 50 days prior to the issue, the government said in a cabinet decision.

The bonds will pay a 7 percent annual coupon with a half-a-percentage-point step up per year. They will be converted to shares after five years, the government said.