(Adds details, background)
ATHENS, June 25 Greece's Piraeus Bank
will raise more than 19.5 percent of the funds it needs to plug
a 7.33 billion euro capital hole from private investors in a
rights offering that ends later on Tuesday, a senior bank
official told Reuters.
Piraeus is the third major Greek lender, after Alpha
and National Bank, to raise at least 10
percent of its common equity issue from private investors, a
requirement under a recapitalization program for banks to stay
"Private sector take-up will be more than 19.5 percent, near
20 percent," said a senior banker at Piraeus who declined to be
named. Meeting the minimum threshold means Piraeus will not need
to resort to issuing costly contingent convertible bonds, or
Greece's four biggest banks, including Piraeus, need 27.5
billion euros ($36.01 billion) to repair their solvency after
losses on sovereign debt writedowns and bad loans.
Their aim is to regain access to capital markets, to help
fund the economy out of its deep six-year recession.
Under a recapitalisation scheme, Athens agreed with its
international lenders, at least 10 percent of new equity issues
by its four big banks must be bought by the market for them to
stay privately run.
The rest of the capital will be pumped in by the HFSF in
exchange for shares.
Piraeus Bank's 35.6-for-1 rights offering at 1.7 euros a
share to raise up to 6.94 billion euros and plug a 7.33 billion
euro capital hole, ended on Tuesday. The bank's plan included
raising another 400 million via a private share placement.
Peers Alpha Bank and National Bank have
met the required threshold, retaining management control.
Eurobank has opted to be fully recapitalised by the
(Reporting by George Georgiopoulos; Editing by Dan Grebler)