Greece's Alpha Bank announces mandatory purchase of series A floaters

By Toni Weeks

San Luis Obispo, Calif., June 20 - Alpha Bank AE said it has issued a call for a mandatory purchase of its remaining €7,795,000 of series A floating-rate non-cumulative guaranteed non-voting preferred tier 1 securities issued by Alpha Group Jersey Ltd.

According to a notice with the London Stock Exchange, the securities will be purchased at a price of 35% of the €1,000 per security liquidation preference. No accrued dividends will be paid.

Settlement is expected Aug. 2.

The redemption follows a tender offer for the same notes that was announced on April 19. At the time, €97.58 million of the notes were outstanding. The purchase price was 35% of the €1,000 liquidation preference, and no dividends were paid. The offer ended at 11 a.m. ET on May 9.

At the same time, the bank tendered for several other series of preferreds and subordinated floating-rate notes as part of a range of proposals to strengthen the core tier 1 capital base of the bank, according to a previous bank press release.

The bank said it was addressing the reforms required by the European Commission, International Monetary Fund and European Central Bank.

As already noted, in the second economic adjustment program for Greece, the four largest Greek banks are expected to conduct liability management exercises on their hybrid capital instruments so as to reduce the remaining amount that will be disbursed to cover their recapitalization and resolution.

Alpha Bank is a banking and financial services group based in Athens.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.