February 1, 2011 / 3:57 PM / 9 years ago

Piraeus says capital ratios up 200 bp on rights

ATHENS, Feb 1 (Reuters) - Piraeus Bank (BOPr.AT), Greece’s fourth-largest lender, said on Tuesday its 807 million euro ($1.1 billion) rights issue, completed on Jan. 31, will boost its capital ratios by 200 basis points.

The bank’s cash call, undertaken to fortify its balance sheet and reduce dependence on the European Central Bank, was oversubscribed 1.3 times.

The bank only just passed pan-European stress tests of its capital strength last July.

“Upon completion of the capital increase, total equity capital of Piraeus Bank group will amount to 4.1 billion euros, strengthening the capital adequacy ratios by 200 basis points,” the lender said in a statement.

It said the Tier 1 ratio would rise to 10.8 percent and total capital adequacy to 11.7 percent.

The bank said 93,690 shareholders took part in the cash call, with subscriptions totalling 1.044 billion euros, of which 784 million corresponded to the exercise of pre-emption rights and 260 million to oversubscription requests.

Piraeus shares gained 6.02 percent on Tuesday to settle at 1.76 euros, underperforming the Athens bourse’s banking index .FTATBNK, which surged 8.07 percent to a three-month high on tighter yield spreads and short-covering as Credit Suisse upgraded the sector to benchmark from underweight. [ID:nLDE7101S3] (Reporting by George Georgiopoulos; Editing by Will Waterman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below