The Share Capital Increase and the Restructuring Plan Marks the beginning of the new course of ATEbank Group.
ATEbank's Annual Ordinary General Meeting of shareholders approved today a share capital increase by € 1,259.5 million through a rights issue. The strengthening of the Bank's capital base, coupled with the on-going implementation of the Restructuring Plan, inaugurate a new phase of development for ATEbank Group.
The share capital increase, which is fully subscribed and has the support of the Greek Government, is expected to restore the Group's capital adequacy ratios and enhance it against future risks. Proceeds of the amount of €675 million will be used for the redemption of the preference shares held by the Greek Government, while the remaining amount of €585 million after the rights issue costs will be a net inflow of funds necessary to restore the Group's capital adequacy.
As for the Restructuring Plan, its central aim is to safeguard ATEbank's long term viability by transforming it into a productive and competitive organization which, having a strong capital base, will offer only financial products and services.
The Restructuring Plan includes measures relating mainly to assets deleveraging, operating expenses reduction, credit policy strengthening, loans-in-arrears control and to organizational and operational improvements.
ATEbank Governor, Mr. Theodoros Pantalakis, stressed that through the share capital increase, "we will remain focused on the successful implementation of the on-going Restructuring Plan so as to bring back the Group to a sound development path, thus, ensuring its viability to the benefit of its shareholders, employees and the Greek economy".