Greece's HFSF to Begin Sale of Up to 12% Stake in National Bank of Greece Next Week

Greece’s bank bailout fund, the Hellenic Financial Stability Fund (HFSF), is set to initiate the process of selling a stake of up to 12 per cent in the National Bank of Greece (NBG) as early as next week, according to two officials familiar with the situation. This planned sale will mark the completion of Greece's re-privatisation efforts for banks that received bailouts during the debt crisis that nearly led the nation to exit the eurozone.

“Our plan is to start the process for the sale of 10 per cent-12 per cent on Monday and conclude by Wednesday,” one of the officials disclosed to Reuters. The HFSF currently holds an 18.4 per cent stake in NBG, which is the second largest lender in Greece by market value. The remaining shares will be transferred to Greece’s sovereign wealth fund.

The official further noted that the shares would be offered at a slight discount to the current market price. As of Tuesday, NBG shares were trading at 7.64 euros, which values a 12 per cent stake at approximately 900 million euros (about $1 billion).

A second official corroborated the timing of the sale, indicating that the shares would be sold through a combined offering targeting both institutional investors abroad and domestic institutional and private investors. Earlier this year and late in 2023, the fund sold its holdings in Eurobank, Alpha Bank, Piraeus Bank, and part of its stake in NBG.

By fLEXI tEAM