November 12, 2012 / 2:15 PM / 5 years ago

Greek bank shares fall after recap terms announced

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.

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