Greece's Alpha Bank raises capital to avoid full nationalization

Greece's Alpha Bank has raised enough private capital through its recent rights issue to maintain management control, making it the first Greek bank to avoid complete nationalization during an ongoing recapitalization of Greek banks.

- Alpha Bank announces the successful completion of its 457.1 million euro ($593.9 million) rights issue (being) fully subscribed, and the allotment of all of the shares offered in the EUR92.9 million private placement to institutional and other qualified private investors - Alpha said in a statement.

- As a consequence, Alpha Bank is the first among the Greek banks, to meet successfully the required private sector contribution test by raising more than 10% of its total recapitalization amount, of EUR4.57 billion, from private investors - it said.

Most of that capital increase will be underwritten by Greece's bank rescue fund, the Hellenic Financial Stability Fund, which will leave the banks effectively under state control.

Under the terms of the recapitalization plan, the banks have to secure a minimum of 10% of their capital needs from the private sector to maintain management autonomy and retain their private character. The HFSF will underwrite the balance--but will have only restricted management rights if its share is less than 90%.

- We are delighted to be the first Greek Bank to meet successfully the Private Sector Contribution in the context of the recapitalization of the Greek banking sector. The recapitalization of Alpha Bank is a vote of confidence in the prospects of the Greek banking system and the Greek economy overall and paves the way for the country to return to the international markets - said Alpha Bank chairman Yannis Costopoulos.

More information on the capital increase process can be found at www.alphabankserbia.com.