October 26, 2017 / 4:50 PM / a year ago

Greece's Eurobank to buy back preference shares from government

ATHENS, Oct 26 (Reuters) - Greece’s third-largest lender, Eurobank, said on Thursday it will seek shareholders’ approval to buy back 950 million euros ($1.1 billion) of preference shares from the government.

It plans to issue an equal amount of subordinated notes to pay for the buyback.

The preference shares were issued to the government under a 28 billion euro liquidity support scheme extended to Greek banks in 2008 at the peak of the global credit crisis.

Buying back the shares would remove any potential dilution risk for Eurobank shareholders and enable the government to earn a coupon on the subordinated notes.

The bank said it will seek shareholder approval at an extraordinary general meeting to take place on Nov. 3. ($1 = 0.8551 euros) (Reporting by Lefteris Papadimas; Editing by Susan Fenton)

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