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Home / World Economy / World Economy News / Greece to sell entire stake in
Piraeus Bank in early March, sources say







GREECE TO SELL ENTIRE STAKE IN PIRAEUS BANK IN EARLY MARCH, SOURCES SAY

in World Economy News 23/02/2024



Greece’s bank bailout fund is likely to sell its entire 27% stake in Piraeus
Bank BOPr.AT in early March, two sources close to the process said on Thursday,
the fourth such sale in the country’s banking sector since October.

The state controlled Hellenic Financial Stability Fund (HFSF) was set up to
recapitalise Greek banks during the country’s decade-long crisis from 2008-2018.
“We are heading for a 27% stake sale…early March,” one of the sources told
Reuters on Thursday, referring to Piraeus.

The sale of the HFSF stake in Piraeus Bank will be the latest in a series of
similar divestments across Greece’s four biggest lenders, reflecting the
progress the banking sector has made since the financial crisis ended.

Piraeus has a market value of 4.9 billion euros ($5.3 billion), which means HFSF
could sell its stake for more than 1 billion euros ($1.08 billion).

“The initial thought was a sale of up to 22% but after the strong interest from
foreign investors the most likely scenario is 27%,” a second source said, adding
that the majority would be offered to institutional investors and a smaller part
to retail investors.

The bank said last week that it expects profits to jump in the coming years,
with its shares up 20% since the beginning of January.

Shares in Greece’s broader banking sector as measured by the FTSE/Athex Banks
index .FTATBNK have gained about 16% since the start of the year after a 67%
jump in 2023, benefiting from strong economic growth and the country’s recent
upgrade to an investment grade credit rating.

Greek lenders cut their bad loan ratios to below 7% in 2023 from 45% in 2016 and
hope to distribute a dividend for the first time after 13 years.

Having injected about 50 billion euros into the sector, HFSF began reducing its
holdings last autumn. It sold a 20% stake in National Bank (NBG) NBGr.AT and
9.4% of Alpha Bank ACBr.AT in November and a smaller stake in Eurobank EURBr.AT
in October.
Source: Reuters (Reporting by Renee Maltezou and Lefteris Papadimas, Editing by
David Goodman, Kirsten Donovan)

2024-02-23
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