The HFSF chooses a preferred investor for Attica Bank

Consultations are in progress with all stakeholders, on the fate of Attica Bank, which is in the process of raising capital of 240 million euros and at the same time its return to the private sector are in full swing.

According to information, within the week its main shareholder with 68%, the Hellenic Financial Stability Fund (HFSF), is expected to choose the preferred investor, between Ellington and Bain Capital, which seek, as their proposals show, to gain control of it through two rounds of capital increase.

Based on the same sources, short-term contacts will follow with the selected scheme for the finalization of the terms of its offer, which is placed at the end of this month and the beginning of December.

The first contacts

It is recalled that the bank’s Board of Directors had approved by decision Ellington, which is allied with the Pension Fund for Engineers and Public Works Contractors (TSMEDE), for their participation in the double capital increase and the concession of the management.

However, when the ball of decisions went to the HFSF, which has the first and last say in the future of Attica Bank, the presentation of both offers was requested.

The first contacts took place last week, where each side presented to HFSF executives, among other things, its plan for the capital increase, its new shareholding structure and the operating model that it wants to apply to the non-systemic banking group.

According to a source who monitors the whole process, the percentages of the shareholders in the post-capital increase period, are probably the most important parameter for evaluating the binding offers that have been submitted.

This is because in both proposals, the HFSF is required to contribute funds to make up for the current deficits and then, through a new, smaller issue, which will be covered for the most part by the private member, to see its rates fall significantly.

Therefore, the central goal of the HFSF is to increase the participation of investors in the capital increase of 240 million euros that will be done by issuing new shares.

Banking circles comment that “losses for the HFSF, at least in the first phase, are inevitable”, notes a banking source.

However, they add, that for the final decisions, in addition to the given costs for the State, the benefits that arise for the domestic banking system as a whole, will be taken into account.

“The aim is, in addition to rescuing a historic credit institution, for the bank to gain perspective,” say the same sources.

In fact, they do not rule out that after a few years, the HFSF will make gains or make up for most of its losses, investing in higher than current prices, if the bank returns to sustainable and high profitability.