Successfully completed the disposition of 10% of National Bank by the HFSF. As announced overcovering the supply by 10.4 times in the total offer achieved, it is a new historical record (in relation to previous transactions carried out in the banking sector in the Greek market), with the total amount raised in the international and Greek book totaling 691 million euros at a price of 7, 55 euros.

According to data, this transaction was carried out with significantly less discount of 1.3% in relation to the closing price of the share on October 2, 2024 and in relation to corresponding European transactions of recent years, where the average discount was of the order of 9.5%. The discount to the unaffected closing price on Friday 27 September 2024 was also low (3.7%) compared to the corresponding European transactions. The demand that manifested itself from the first minutes of the opening of the offer book among international investors resulted in the offer being covered in record time (in less than 5 minutes).

The strong and increased demand led the HFSF Board of Directors, at its meeting on October 1, 2024, to set a narrower price range for the international offer, from 7.40 euros to 7.65 euros per share (instead of the original 7, 30 euros to 7.95 euros), thereby increasing the lower end of the price range, while before the closing of the bid book on October 2, 2024, the final offer price was set even higher, at 7.55 euros, maximizing as much as possible amount of the benefit for the Greek State.

Both the Greek Public Offer and the International Offer were oversubscribed in their entirety. The exceptional response of the international and Greek investment public, given the geopolitical tensions and subsequent fluctuations in the international markets that have prevailed in recent days, makes the success of the transaction even more important, as market executives report, is a practical confirmation of the investors’ confidence in the National Bank.

With the new successful sale of 10% of NGE’s shares, the HFSF completes its disinvestment cycle from the systemic banks, and in fact at least one year from the final date provided for by law.

The completion of the disinvestment program by the HFSF marks the beginning of the new chapter in which the country’s banking sector is entering, leaving behind the instability and uncertainty of the previous decade

As bank executives have mentioned in their public interventions, the capital-shielded, robust and competitive banks, with strong prospects for investability and growth, are ready to meet the challenges and play their essential role of supporting the development of the country’s economy.

The Divestment Strategy prepared and implemented by the HFSF and approved by the Ministry of Finance included provisions for the appropriate competitive bidding procedures and the conditions for participation in them, the requirements for transparency and compliance with Capital Market legislation, as well as the possible disposal methodologies. Also, the Divestment Strategy contained specific provisions for the most appropriate ways of divestment per banking institution, as well as for external factors that must be taken into account, such as the prevailing conditions in the capital markets.

Over the course of almost a year, the HFSF team, led by Il. Xirouhakis, with the assistance of his advisors, and under the leadership and guidance of the Management, implemented 5 divestment transactions, more specifically:

– On October 9, 2023, completed the first Divestment transaction from Eurobank with a percentage of 1.4%, for a total price of 93.7 million euros, with Eurobank becoming the first systemic Greek bank after the financial crisis to go fully private domain. The transaction took place after Eurobank’s initial binding offer to acquire its shares through a targeted share buyback and the parallel completion of a tender process at a price that included a premium of 18.4%.

– On November 12, 2023, the HFSF agreed to sell its entire 9% stake in Alpha to a strategic investor, the Italian bank UniCredit. The transaction was carried out after the completion of a tender process where the HFSF did not receive a competitive offer from another investor. UniCredit bought the entire stake at a premium of 9.4%.

– On November 17, 2023, the HFSF completed the successful disposal of 22% of the total shares (40.39%) it held in National Bank, through a public offer, to Greek and foreign investors. The total value of the transaction amounted to 1.07 billion euros. This transaction, as announced, was the second European privatization of more than €1 billion to be carried out through placement, since the Irish government sold a €3.4 billion stake in Allied Irish Bank in 2017 (at a then 43% discount ).

– On March 6, 2024, the HFSF completed the disposal of all the shares it owned in Piraeus. The total value of the transaction reached 1.35 billion euros. The transaction, as announced, was the most successful offering of shares through a Public Offering at a pan-European level. At the same time, it was also the largest privatization through secondary placement in our country, with a premium of 0.35% compared to the closing price on the day before the announcement of the offer, which was unprecedented internationally. The over-coverage of the share offering in Piraeus Bank was 8 times for the total offer.

– On October 2, 2024, the HFSF completed the second successful allocation of 10% of the total shares (18.39%) it held in National Bank, to Greek and foreign investors, after the necessary period of time defined by the agreed framework disinvestment. The total value of the transaction amounted to 691 million euros. The overhang touched 11 times the total offering, attracting strong interest from leading international institutional investors.