ATHENS May 1 Greece's fourth-largest lender
Eurobank said on Wednesday it plans to buy back up to
580 million euros ($765 million) of notes it had issued in
exchange for new common shares as part of moves to boost its
Greece's four big banks including Eurobank will be
recapitalised with 27.5 billion euros to restore their solvency
and such liability management moves are required under a bailout
scheme funded by the country's international lenders.
Eurobank aims to buy back five series of hybrid securities
and a subordinated note at their nominal value, offering holders
new common shares at the same price as those issued to a bank
rescue fund covering its 5.84 billion euro capital
Eurobank, which has about 633 million euros outstanding in
these securities, will seek shareholder approval for the plan on
May 30 and expects to complete the buyback in June.
The new shares to be issued will be privately placed with
the holders of the tendered notes, with existing shareholders
waiving their rights.
Peer Alpha Bank last month launched a similar
offer to repurchase hybrid bonds at a discount.
(Reporting by George Georgiopoulos; Editing by David Holmes)