ATHENS, May 5 (Reuters) - Shares in Greece’s Alpha Bank will trade without rights to its planned 457 million euro ($600 million) share offering from May 13, the Athens bourse said, as the country’s big banks kick off their recapitalisation.
Greece’s top four banks, including Alpha, need 27.5 billion euros in fresh funds to restore their solvency after incurring losses on bad loans and on the country’s sovereign debt write-off.
Alpha’s rights offering, part of a 4.57 billion euro capital strengthening exercise, got the go-ahead from the securities regulator and will be underwritten by J.P. Morgan, Citigroup, HSBC and France’s Credit Agricole.
Rights will trade from May 17 to 27, and the subscription period for the offering will run from May 17 to 31.
The bank will also issue new common shares to raise up to 92.9 million euros on which existing shareholders will waive their rights. These shares will be privately placed with institutional investors.
The remaining funds to plug its 4.57 billion euro capital need will be provided by a state bank rescue fund - the Hellenic Financial Stability Fund (HFSF) - in exchange for new shares with limited voting rights.
Under the recapitalisation rules laid down by Greece’s creditors, at least 10 percent of banks’ new common equity must be raised from the private sector for them to stay privately run. (Reporting by George Georgiopoulos)