By Devika Patel
Knoxville, Tenn., Sept. 7 - National Bank of Greece SA said that it launched a €1.18 billion offering of convertible equity notes by way of pre-emption rights to existing ordinary shareholders.
The notes will be convertible into 227.6 million ordinary shares and will be sold at the ratio of three convertibles for every eight ordinary shares held. The conversion price will be €5.20 per share.
The Athens-based financial institution will sell up to 227.6 million of the convertibles at €5.20 apiece.
The convertibles will mature on the seventh calendar day following the issue date. Any notes that have not been converted by the last business day prior to maturity will be repurchased by the company at the issue price and sold to the underwriters, who have agreed to convert the notes.
"The proposed capital plan announced today is testimony to the improving sentiment towards NBG and Greece and should be an important milestone in the country's adjustment process," bank chairman Vasilios Rapanos said in a press release.
The bank also plans a pre-emptive equity rights offering to raise €631 million by issuing 121.4 million ordinary shares at €5.20 per share and a subscription ratio of one new share for every five existing shares.
| Issuer: | National Bank of Greece SA
|
| Issue: | Convertible equity notes
|
| Amount: | €1,184,000,000
|
| Maturity: | Seven days
|
| Price: | Par of €5.20
|
| Conversion price: | €5.20
|
| Pricing date: | Sept. 7
|
| Stock symbol: | Athens: NBGR
|
| Stock price: | €10.40 at close Sept. 7
|
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