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

22 December 2015
165 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 most corrupt countries in the world
WORLD
shares29 views
WORLD
shares29 views

The most corrupt countries in the world

makis - Feb 22, 2018

The Corruption Perception Index (CPI) – a list of the world’s most and least corrupt countries – for 2017 has…

Greek President Pavlopoulos calls on Turkey to abandon aggressive tactics against Greece and EU
POLITICS
shares25 views
POLITICS
shares25 views

Greek President Pavlopoulos calls on Turkey to abandon aggressive tactics against Greece and EU

makis - Feb 22, 2018

The President of the Hellenic Republic, Prokopis Pavlopoulos, sent a clear message to Turkey and FYROM, during his meeting with…

Shock: Pakistani men arrested for the rape of a 13-year-old boy
GREECE
shares41 views
GREECE
shares41 views

Shock: Pakistani men arrested for the rape of a 13-year-old boy

makis - Feb 22, 2018

The local community at Evia, Greece is outraged and shocked after it was revealed that a 13-year-old boy was raped…

Leave a Comment

Your email address will not be published.