Alpha Bank launches exchange offer on outstanding debt

29 October 2015
146 Views

Alpha Bank became the second Greek bank to launch an exchange offer on its outstanding subordinated and senior bonds in recent weeks as the countries’ lenders scramble to plug capital hole.

The Greek lender follows in Piraeus’s footsteps, it having launched a similar offer on October 15

It is looking to exchange 27 subordinated and senior bonds originally amounting to 2.796bn, of which 1.086bn remains outstanding, for so-called non-transferable receipts.

Investors will have the option of exchanging their holdings into either cash or shares. For those opting for cash, Alpha is offering to pay between 50.00 and 5.00, depending on the type of security.

The results of the Greek bank stress tests are expected to be released this weekend and the country’s institutions are under pressure to find money from private investors to fill any capital shortfalls

“The exchange offers are being made to strengthen the offeror’s capital base, which has been impacted by the impaired macro-economic conditions recently experienced in the Hellenic Republic that are affecting all Greek financial institutions,” the bank said in a statement.

Piraeus also targeted both senior and subordinated debt holders for capital ahead of a possible equity capital raise.

Citigroup and JP Morgan are dealer managers for the exchange offer, which expires on November 16.

You may be interested

Turkish deputy-Prime Minister accuses Greece of oppressing religious minorities in latest Turkish tirade against Greece
GREECE
shares58 views
GREECE
shares58 views

Turkish deputy-Prime Minister accuses Greece of oppressing religious minorities in latest Turkish tirade against Greece

makis - Nov 17, 2017

Turkish Deputy Prime Minister Bekir Bozdag accused Greece of imprisoning Muslim Imams, despite the country being a member of the…

Greek PM says country would rely on itself to face flood disaster
POLITICS
shares77 views
POLITICS
shares77 views

Greek PM says country would rely on itself to face flood disaster

makis - Nov 17, 2017

Greek PM Alexis Tsipras thanked European countries for offering to help after the flash floods in western Attica, Wednesday, which…

US meteorologist explains deadly storm that flooded Greek towns
GREECE
shares99 views
GREECE
shares99 views

US meteorologist explains deadly storm that flooded Greek towns

makis - Nov 17, 2017

“When the Atlantic hurricane season begins to quiet down in late October and November, it’s time to cast an eye…

Leave a Comment

Your email address will not be published.