Greece’s NBG to sell stake in Finansbank in April

ISTANBUL

Finansbank, 99.8 percent of which is owned by National Bank of Greece (NBG), has announced its intention to launch an offering of its ordinary shares listed on Turkey’s main stock exchange, Borsa Istanbul.

In a statement to Public Disclosure Platform (KAP) on March 11, Finansbank said the offering is expected to be completed in early April, subject to market conditions.

NBG will continue to own 73 percent of the bank’s outstanding shares, according to the statement.

“NBG does not have any intention to reduce its ownership stake in the bank below 60 percent,” said the statement.

Finansbank expects to use the proceeds from the issue of the new shares to finance its growth and for other general corporate purposes, according to the statement.

It also aims to achieve an average annual growth of at least 20 percent.

The European Commission has approved NBG’s restructuring plan, which includes reducing NBG’s stake in Turkey’s Finansbank last July.

NBG was one of Greece’s big four banks that were rescued with state aid during the country’s debt crisis. The Commission then reviewed NBG’s business plan to see if it was in line with EU state aid rules.

The restructuring plan envisages NBG cutting its holding in its Turkish subsidiary Finansbank to strengthen its capital position.