ATHENS, Nov 12 (Reuters) - Greek bank shares were trading 15 percent lower on Monday after the government released the terms of a bank recapitalisation plan at which shares will be sold at a 50 percent discount.
Under the terms, banks will issue new shares to bring themselves to a core Tier 1 capital adequacy ratio of 6 percent. The new shares will be priced at half of the average price over the 50 days prior to their issue.
They will also issue convertible bonds.
“It’s a delayed reaction to the dilutive nature of the recapitalisation architecture,” said a broker who declined to be named.