Group Finance Director
In any case, the bank will now have ample funds to overcome the EU-wide stress tests of some 128 systemic Eurozone banks in October.
"With Common Equity Tier 1 ratio amounting to 15.1%, significantly above the minimum required by (banking) supervisors which is 8%, we have created a capital buffer amounting at €1.6 bln", Patsalides told the state-run
He said that given the current risk profile of the bank, the quality of the loan portfolio and the bank's reduced exposure abroad, there is a significant capital buffer to absorb unexpected losses or shocks.
The senior official of the Group noted that after the completion of the first phase of the share capital increase with a private placement of €1 bln in fresh capital to existing and institutional investors, the existing shareholders hold 53% of the bank, while new shareholders the remaining 47%. The percentage of former "legacy"
Ross heads a group of investors who have pumped in €400 mln, while the EU-owned
Patsalides said the increase in share capital also paves the way for borrowing from the debt markets, which will help the bank to replace the ELA with conventional financial instruments, such as bonds and deposits, while improving the trust of the depositors in the bank
"It is not a coincidence that the international rating agencies have seen positively this increase and is expected to gradually upgrade the credit rating of the Bank, something that reduces the cost of borrowing from the markets," he said.
Moody's said that the capital increase will improve the bank's liquidity and its financial position and that it will increase investor confidence and possibly open up other funding prospects.
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