National Bank of Greece S.A. (“NBG”) announces the transfer of its 99.81% stake in Finansbank A.Ş. to Qatar National Bank S.A.Q. (“QNB”). The consideration was €2,750 million. The transaction includes the transfer of NBG’s 29.87% stake in Finans Finansal Kiralama A.Ş, 0.2% stake in Finans Yatırım Menkul Degerler A.Ş. and 0.02% stake in Finans Portfoy Yonetimi A.Ş. In addition, QNB repaid the $910 million of subordinated debt that NBG had extended to Finansbank, increasing the liquidity position of the NBG Group by approximately €3.6 billion.
With the successful completion of the Transaction, NBG’s pro-forma Q1 2016 CET1 ratio increases by c.740bps to 21.8%. This capital enhancement will pave the way to the repayment, following approval by the Single Supervisory Mechanism of the European Central Bank (SSM), of the €2.0bn Contingent Convertible Bonds (CoCos) issued by NBG on 9th December 2015.
NBG will utilise the liquidity generated by the Transaction to reduce significantly its cost of funding through the non-renewal of Pillar II bonds and the associated reduction of the Bank’s exposure to the Emergency Liquidity Assistance mechanism.
The sale of Finansbank underlines NBG management’s unequivocal commitment to the successful implementation of the Bank’s restructuring plan and its long-term strategy to successfully redeploy capital towards the Greek economy and be the leader in the country’s economic recovery.
Leonidas Fragkiadakis, NBG CEO, said: "NBG’s divestment from Finansbank underscores the resolve with which the Bank will pursue its goal of delivering value to its shareholders while observing its commitments. NBG is now the best capitalized and the most liquid bank in Greece and will pursue from a position of strength its strategy, consisting of three core objectives: profitability enhancement, asset quality improvement and support to the Greek economy on its return to growth. I am very pleased that the new owner of Finansbank, QNB, has a long-term strategic interest in Turkey and will continue to grow and develop the bank.”