ATHENS Dec 11 Investors exercised about 2.4
percent of Alpha Bank's 1.23 billion outstanding
warrants to buy shares in Greece's fourth-largest lender from
bank rescue fund HFSF, its major shareholder, an official at the
bank said on Wednesday.
About 218 million Alpha Bank shares will be bought from the
Hellenic Financial Stability Fund (HFSF) as a result of the
exercise, meaning proceeds of about 100 million euros ($137.71
million) for the bank rescue fund, the official said.
Investors who took part in the bank's recapitalisation in
June were given warrants as an incentive to take part in Alpha's
As part of Greece's 240-billion-euro international bailout,
the country's top four banks, including Alpha, were
recapitalised mainly by rescue fund HFSF in June to restore
their solvency ratios after losses from a sovereign debt
writedown and bad loans.
Alpha had raised 12 percent of the 4.57 billion euros it
needed to restore its capital adequacy from the market, with the
rest pumped in by the HFSF, which ended up owning 84 percent of
"The first exercise period which expired on Tuesday will
increase the bank's free-float by about 2 percent, reducing the
rescue fund's stake to about 82 percent," the official told
Reuters, declining to be named.
The warrants give holders the right to buy shares from the
HFSF in semi-annual exercise periods up to December 2017.
Final numbers are expected on Friday when the transaction
Warrant holders had the right to acquire 7.41 Alpha Bank
shares per warrant at 0.448 euros per share in the first
($1 = 0.7261 euros)
(Reporting by George Georgiopoulos; Editing by Deepa Babington
and Louise Heavens)