HB: Share capital increase by €220m via rights issue
3/11/2014 8:24
Further to our announcements dated September 24, 2014 and October 26, 2014, the Board of Directors of Hellenic Bank Public Company Ltd, at a meeting held today, decided to increase the share capital of the Bank by €220 million via a Rights Issue to the existing shareholders of Hellenic Bank, after securing the necessary approvals by the competent authorities.
Specifically:
-The Rights will be issued to the ratio of one Right for every existing share.
-The Rights will be listed for trading on the Cyprus Stock Exchange, after securing the necessary approval by the competent authorities.
-Every two (2) Rights exercised will be converted into three (3) new ordinary shares of nominal value €0.01 with an exercise price of €0.0375 for every new ordinary share. The exercise price represents 27.5% discount to the theoretical ex-rights price based on the closing price of the shares of Hellenic Bank on the Cyprus Stock Exchange on October 31, 2014.
-The issuance of 5.905 million new ordinary shares.
-The Rights’ holders will be entitled to subscribe for the acquisition of additional shares that may result from the unexercised rights.
The two major shareholders of the Bank, Third Point Hellenic Recovery Fund LP and Wargaming Public Company Limited holding 20.3% each of the share capital of the Bank support the actions for the share capital increase and pledged in writing to exercise their Rights.
As already announced, Hellenic Bank has appointed Deutsche Bank AG London branch as Sole Global Coordinator and Joint Placement Agent and Axia Ventures Group Ltd as Joint Placement Agent with N.M. Rothschild & Sons as advisor. Hellenic Bank (Investments) Ltd has been appointed as Underwriter for the preparation and submission of the required Prospectus to the Cyprus Securities and Exchange Commission.
Through the Rights Issue, Hellenic Bank aims to enhance its capital base and to absorb capital that will allow it to seek business opportunities with the recovery of the Cyprus economy and to take advantage of its comparable advantages, developing its customer base, the size of its portfolio and its share markets.
Specifically, the Rights Issue aims to:
- Oversubscribe the need for a capital increase of €105 million according to the “Adverse Scenario” of the stress test,
- Enhance further its capital position. With the completion of the Rights Issue, the Core Tier 1 Capital stands at 13.2% based on the capital framework and 12.4% based on the Capital Requirement Regulation (CRR) without transitional provisions (September 30, 2014, taking into account the capital emerging from the conversion of the Convertible Capital Securities 1 of €24 million in shares as announced on October 26, 2014),
- Expand its share base and free float and
- Be able to take advantage of the opportunities that will emerge, to increase its market share and to contribute to the recovery of the Cyprus economy.
Specifically:
-The Rights will be issued to the ratio of one Right for every existing share.
-The Rights will be listed for trading on the Cyprus Stock Exchange, after securing the necessary approval by the competent authorities.
-Every two (2) Rights exercised will be converted into three (3) new ordinary shares of nominal value €0.01 with an exercise price of €0.0375 for every new ordinary share. The exercise price represents 27.5% discount to the theoretical ex-rights price based on the closing price of the shares of Hellenic Bank on the Cyprus Stock Exchange on October 31, 2014.
-The issuance of 5.905 million new ordinary shares.
-The Rights’ holders will be entitled to subscribe for the acquisition of additional shares that may result from the unexercised rights.
The two major shareholders of the Bank, Third Point Hellenic Recovery Fund LP and Wargaming Public Company Limited holding 20.3% each of the share capital of the Bank support the actions for the share capital increase and pledged in writing to exercise their Rights.
As already announced, Hellenic Bank has appointed Deutsche Bank AG London branch as Sole Global Coordinator and Joint Placement Agent and Axia Ventures Group Ltd as Joint Placement Agent with N.M. Rothschild & Sons as advisor. Hellenic Bank (Investments) Ltd has been appointed as Underwriter for the preparation and submission of the required Prospectus to the Cyprus Securities and Exchange Commission.
Through the Rights Issue, Hellenic Bank aims to enhance its capital base and to absorb capital that will allow it to seek business opportunities with the recovery of the Cyprus economy and to take advantage of its comparable advantages, developing its customer base, the size of its portfolio and its share markets.
Specifically, the Rights Issue aims to:
- Oversubscribe the need for a capital increase of €105 million according to the “Adverse Scenario” of the stress test,
- Enhance further its capital position. With the completion of the Rights Issue, the Core Tier 1 Capital stands at 13.2% based on the capital framework and 12.4% based on the Capital Requirement Regulation (CRR) without transitional provisions (September 30, 2014, taking into account the capital emerging from the conversion of the Convertible Capital Securities 1 of €24 million in shares as announced on October 26, 2014),
- Expand its share base and free float and
- Be able to take advantage of the opportunities that will emerge, to increase its market share and to contribute to the recovery of the Cyprus economy.
