Greece has finalised the re-privatisation of its banking sector with the sale of a 10% stake in National Bank of Greece (NBG), concluding a major chapter of its post-crisis economic reforms.
The transaction, announced Thursday by the Greek state-controlled bank bailout fund HFSF, saw significant demand from investors, raising €690 million ($760.93 million) to help reduce Greece’s substantial public debt burden.
The Hellenic Financial Stability Fund (HFSF) sold 91.4 million shares of National Bank, Greece’s second-largest lender by market value, at €7.55 per share. The sale, conducted through a book-building process and public offer that concluded on Wednesday, fell at the midpoint of the initial price range of €7.3 to €7.95 per share.
"There was strong demand from both foreign and domestic investors, with the offering oversubscribed by 12 times," an official involved in the sale told Reuters on condition of anonymity.
The HFSF, established in 2010, had initially injected around €50 billion into Greece’s four largest banks to stabilise them during the 2009-2018 debt crisis, receiving equity in return. Over the past year, as Greece regained its investment-grade credit rating, the fund has gradually divested its stakes in these banks. Recent sales included holdings in Eurobank, Alpha Bank, and a partial stake in National Bank in late 2023, as well as a 27% stake in Piraeus Bank earlier this year.
Following this sale, HFSF will transfer its remaining 8.4% stake in National Bank to Greece’s sovereign wealth fund, marking the completion of its bank divestment strategy. This step is viewed by investors as a sign of Greece’s broader economic recovery, though many ordinary citizens continue to grapple with the long-term effects of the financial crisis.
Shares from the latest sale are expected to be allocated later on Thursday. The process was led by major financial institutions including J.P. Morgan, Goldman Sachs, UBS, BofA Securities, BNP Paribas, Citigroup Global Markets, and Deutsche Bank, acting as joint bookrunners.
(Source: Reuters)