NAT. BANK OF GREECE SA
FinansBank increases its share capital by €285 million
The Board of Finansbank has decided to increase the company's share capital by TRY 551,250K (approx. € 285 million).
The increase will be mainly covered by capitalisation of subordinated debt worth USD 325 million (TRY 496 million) granted in the past by NBG to Finansbank; by a cash participation by the International Finance Corporation (IFC), which holds 5%, (TRY 27 million); and by capitalisation of dividends and reserves (TRY 27 million).
The share capital increase should take place at the end of September 2010, once Turkish CMB and BRSA approvals have been obtained. With this increase, Finansbank's share capital will rise from TRY 1,653,750K to TRY 2,205,000K and total equity will exceed TRY 5.5 billion (approx. € 2.85 billion).
Following the share capital increase it is estimated that Finansbank's core Tier I Capital Adequacy Ratio will be up by 170 bps and will reach 14%, a level that allows it to pursue further growth.
The increase will be mainly covered by capitalisation of subordinated debt worth USD 325 million (TRY 496 million) granted in the past by NBG to Finansbank; by a cash participation by the International Finance Corporation (IFC), which holds 5%, (TRY 27 million); and by capitalisation of dividends and reserves (TRY 27 million).
The share capital increase should take place at the end of September 2010, once Turkish CMB and BRSA approvals have been obtained. With this increase, Finansbank's share capital will rise from TRY 1,653,750K to TRY 2,205,000K and total equity will exceed TRY 5.5 billion (approx. € 2.85 billion).
Following the share capital increase it is estimated that Finansbank's core Tier I Capital Adequacy Ratio will be up by 170 bps and will reach 14%, a level that allows it to pursue further growth.