The proposed capital raising structure is part of the company’s three-year strategic plan and will take advantage of the positive market conditions
Alpha Bank hires JPMorgan, Goldman to boost capital growth. (Credit: Tumisu from Pixabay.)
Alpha Services and Holdings, the parent of Alpha Bank, has roped in JP Morgan and Goldman Sachs as advisers to raise growth capital of nearly €800m.
The proposed capital raising structure is part of the company’s three-year strategic plan and will take advantage of the positive market conditions and strength of business, said the company.
The lender views the outlook for the Greek economy as ‘especially positive’ and intends to support the government’s efforts to boost economic growth and attract foreign investment.
A banker told Reuters: “It’s a pretty standard reaction amidst fears of dilution as new shares are issued at discounts to the prevailing market price. This is not about dealing with a capital shortfall, it is not a recapitalisation. But Alpha’s equity story needs to be explained.”
Alpha Bank said that it already had required capital buffers to further reduce the risks in its balance sheet from impaired loans.
Another banker said: “This will be the first capital boost for growth by a Greek bank in years. Alpha sees a unique opportunity to fund an expected investment-driven growth phase in Greece with new loans that will boost its profitability.”
Italian payments group Nexi is in discussions with Alpha Bank to acquire a stake in the latter’s payment business for retailers, reported Reuters.