Thriller with Alpha Bank: Which giant buys it

Thriller with Alpha Bank: Which giant buys it
Thriller with Alpha Bank: Which giant buys it

Alpha Bank: Reshuffles in the banking industry as Dutch Reggeborgh bought a sizeable stake in Alpha Bank.

At a time when foreign strategic investors in Greek banks are worried about the weak returns and prospects of their investments, a new powerful player is emerging and is ready to lead the movements of share changes and realignment of forces in the sector.

The Dutch group Reggeborgh, which controls the construction group Ellaktor (and was previously the largest shareholder of GEK TERNA) acquired 5.16% of Alpha Bank (121,077,535 shares) and is now its third largest shareholder after the HFSF (9 %) and John Paulson (7.32%).

Confirming in practice its long-rumored interest in Greek banks, the Dutch group methodically collected shares from the market without making any publicized takeover deal.

Bankers believe that this move indicates the intentions of the Dutch and is perhaps the first step in their strategic plans to acquire a significant role in the Greek financial and financial services market.

This view will be fully confirmed if Reggeborgh continues to accumulate Alpha Bank shares, gradually increasing its percentage.

Of course, the biggest confirmation will be a deal to buy out packages from the other two major shareholders, or from foreign investment portfolios that have percentages of 0.5%-2%. It is pointed out that similar tactics were followed by the Dutch in the cases of Ellactor and GEK TERNA.

In Alpha it is even easier for them to acquire a larger percentage and become the largest shareholder, as the stock is widely dispersed, while there is no “competitor” who would try to gather shares against the Dutch group.

Executives of major ACPs stress that the market will now follow Reggeborgh’s movements with great interest, which will be a starting point and a catalyst for processes in the banking area.

Alpha Bank: What is happening to the Greek banks?

A financial thriller has been unfolding lately as Greek banks are looking for money and indeed… urgently!

In a difficult search for money from the international market have entered the Greek banks, which by the end of 2025 have collected more than 15 billion euros of additional funds to cover the new supervisory rules for their capital adequacy.

This is the largest amount that any national banking system in the eurozone is required to raise, and the search for fresh money is becoming very expensive in the new market conditions.

The example of Eurobank, which proceeded today to issue bonds, with the aim of covering the supervisory requirements, is typical. The issuance of senior preferred bonds by the bank was completed quite successfully, as bids of 650 million euros were collected.

However, the interest rate on the issue jumped to 4.375% and was about double the rate of the corresponding issue last year.

Rising bond funding costs have already been noted by analysts as a threat to banks’ profitability. As pointed out by the European Institutions in the latest enhanced supervision report, the uncertainty prevailing in the market will affect banks’ funding costs and may have an impact on their strategy for further issuance of securities to meet the minimum regulatory capital requirements (MREL). .

As highlighted in the report, the pressures on funding costs are sought by banks to be balanced in other ways, such as increasing lending, reducing provisions for problem loans and developing alternative sources of income through digital transformation, so that there is no hit to profitability.

Greek banks have the most serious problem in the eurozone with the new supervisory rules, which oblige banks to form an additional capital cushion (MREL), which can be used in the event of liquidation.

It is characteristic that, according to an analysis done by ING last November, the total capital shortfall to cover the MREL requirements of the Eurozone banks was estimated at 42 billion euros, of which 16 billion euros (38%) they concerned the Greek banks.

The amount has fallen slightly since then, but still exceeds the €15 billion that Greek banks will need to raise from the market by the end of 2025.

The effort is becoming difficult as rising inflation and an expected rise in interest rates in the eurozone, combined with the end of the ECB’s emergency bond-buying program, are driving up bank bond yields and raising the cost of raising capital, as shown in the chart of the Bank of Greece (Financial Stability Report, data up to 6/5/2022).

Alpha Bank: This is its new competitor

Its name may be unknown to many, however, based in Thessaloniki, it is making an amazing progress, making profits! See at xristika.gr who they are…

The Black Sea Trade and Development Bank (“Pareuxinia”), based in Thessaloniki, is increasing its registered capital by 810 million euros, to 3.10 billion euros, compared to 2.29 billion euros.

In fact, this increase opens the “door” for admission to its share capital of other states, beyond its current 11 shareholders.

The registration process is expected to be finalized by the end of September 2022 and the Bank’s shareholder countries, including Greece, will be asked to make the relevant payments in eight installments, between the years 2023 and 2030.

The procedure also leaves “10% of the total authorized capital of the Bank available for later registration, possibly also by new shareholders of the Bank”, as clarified in a statement of the transnational institution.

It is recalled that during a recent event of the Bank, in Kallithea, Halkidiki, it was announced that Parexinia is considering the admission of more states to its share capital and is in relevant negotiations with Serbia and North Macedonia, member states of the Black Sea Economic Cooperation Organization Pontou (OSEP).

The increase was decided today, during an extraordinary meeting of the Bank’s Board of Governors and has four objectives: the fulfillment of the strategic objectives set in the Bank’s long-term strategy for the period up to 2030, the further promotion of economic development in the region of Mavri Sea and regional cooperation between its member states, improving crisis response capacity and increasing relevance to its stakeholders.

“The new registration is a continuation of the increase of the authorized capital of the Bank, which was approved in 2007 and the first round of registration which was approved and completed in 2018.

The registration covers 70% of the existing authorized, but unregistered capital and leaves 10% of the total authorized capital of 3.45 billion euros available for later registration, possibly also by new shareholders of the Bank,” the announcement states.

The paid-up part of the newly registered capital will be 30%, with 70% remaining collable – in accordance with the Bank’s existing capital structure.

As a result of the new registration, the Bank will receive additional capital of EUR 244.96 million, thus increasing its paid-up share capital to EUR 931.51 million.

The Black Sea Trade and Development Bank (TEAEP, or Black Sea Bank) is an international financial institution, which was founded by the countries (alphabetically) Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine.

Its three largest shareholders are Greece, Russia and Turkey with equal percentages.

Headquartered in Thessaloniki, the Bank supports economic development and regional cooperation by granting loans, lines of credit, participations and guarantees for business and trade finance in the public and private sectors in its member countries.

The article is in Greek

Tags: Thriller Alpha Bank giant buys

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