LONDON, Oct 18 (Reuters) - Alpha Bank will launch a rights issue of 986.3 million euros ($1.47 billion) on Monday to buy back preferred shares it sold to the government earlier this year, sources familiar with the matter said on Sunday.
Alpha Bank, Greece's third-largest lender, will launch a 3-for-10 rights issue underwritten by Morgan Stanley, J.P. Morgan and Bank of America Merrill Lynch.
The issue price, at 8 euros per share, represents a 33 percent discount to the theoretical ex-rights price (TERP), the sources said.
The bank's core tier one ratio will increase to 9 percent from 7 percent after the deal, one source said.
The company said late on Friday it planned to buy back the preferred shares it sold to the government earlier this year.
Dividend restriction would be lifted after the buy back, the sources said.
($1=.6702 EURO)
(Reporting by Daisy Ku; Editing by Steve Orlofsky) Keywords: ALPHABANK/RIGHTSISSUE (daisy.ku@thomsonreuters.com; +44 207 542 5106; Reuters Messaging: daisy.kureuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Alpha Bank, Greece's third-largest lender, will launch a 3-for-10 rights issue underwritten by Morgan Stanley, J.P. Morgan and Bank of America Merrill Lynch.
The issue price, at 8 euros per share, represents a 33 percent discount to the theoretical ex-rights price (TERP), the sources said.
The bank's core tier one ratio will increase to 9 percent from 7 percent after the deal, one source said.
The company said late on Friday it planned to buy back the preferred shares it sold to the government earlier this year.
Dividend restriction would be lifted after the buy back, the sources said.
($1=.6702 EURO)
(Reporting by Daisy Ku; Editing by Steve Orlofsky) Keywords: ALPHABANK/RIGHTSISSUE (daisy.ku@thomsonreuters.com; +44 207 542 5106; Reuters Messaging: daisy.kureuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
