Qatar’s QNB acquires National Bank of Greece’s stake in Finansbank

22 December 2015
135 Views

Qatar National Bank SAQ , the Gulf Arab region’s largest bank, reached an agreement with National Bank of Greece to acquire the latter’s entire 99.81 percent stake in Turkey’s Finansbank AS for 2.7 billion euros ($2.95 billion), the two banks said on Tuesday.
National Bank planned the sale of its Turkish unit to plug a capital shortfall identified in European Central Bank (ECB) stress tests in October.
The closing of the transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be complete in the first half of 2016, Qatar National Bank said.

National Bank said that Qatar National Bank would also pay Finansbank’s $910 million debt to the Greek lender.

National Bank will use the proceeds to pay back 2 billion euros of aid it received from Greece’s bank rescue fund by issuing contingent convertible bonds (CoCos), saving about 150 million euros annually, officials at National Bank said.
The deal will also help the Greek lender to reduce its dependence on emergency liquidity assistance from the Greek central bank, which is more costly than normal lending, the officials said.

“Finansbank’s sale confirms the commitment made by National Bank’s management to implement the bank’s restructuring plan consistently, as well as its long-term strategy to use its capital effectively to the benefit of the Greek economy,” National Bank said in a statement.
The transaction had been approved by the board of directors of both banks and the General Council of Greece’s bank rescue fund – the Hellenic Financial Stability Fund – QNB said in a statement.

You may be interested

The Archaeological Museum of Eleusis
GREECE
shares9 views
GREECE
shares9 views

The Archaeological Museum of Eleusis

Panos - Dec 12, 2017

The Archaeological Museum of Eleusis, invites you to a journey to the past of Eleusis, one of the five sacred…

Lesvos mayor prevents freighter from unloading huts for Moria hotspot
GREECE
shares24 views
GREECE
shares24 views

Lesvos mayor prevents freighter from unloading huts for Moria hotspot

Panos - Dec 12, 2017

Municipal authorities in Mytilene, on the island of Lesvos, stopped at the island’s port on Monday a freighter from unloading…

Greece financial crisis: Fears general election could spark further turmoil
FINANCE
shares46 views
FINANCE
shares46 views

Greece financial crisis: Fears general election could spark further turmoil

Panos - Dec 12, 2017

GREECE’s economy is growing, but as the country comes to the end of its bailout program the looming threat of…

Leave a Comment

Your email address will not be published.