Greek lender Alpha Bank is reportedly planning to raise €800m ($980m) capital to support its growth.
According to a Reuters report, the lender has already hired JPMorgan and Goldman Sachs as advisers for the capital raising initiative.
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Alpha Bank was quoted as saying in a bourse filing: “The proposed capital raising seeks to take advantage of favourable market conditions and the bank’s strong financial position.”
The bank also highlighted Greek economic prospects as positive and said that it plans to help the government in its plans to support growth and fetch foreign investment.
At the end of December last year, Alpha Bank’s total capital adequacy ratio stood at 18.4%. The bank is also said to have enough capital buffer to address risks generating from bad loans.
A banker told Reuters: “This will be the first capital boost for growth by a Greek bank in years.
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By GlobalData“Alpha sees a unique opportunity to fund an expected investment-driven growth phase in Greece with new loans that will boost its profitability.”
Last year, Alpha Bank reported a net profit of €103.7m, a marginal fall from €105.3m reported a year ago.
Notably, Greece’s Hellenic Financial Stability Fund (HFSF), a special purpose bank rescue fund, owns an 11% stake in the lender.
Last month, another Greek lender Piraeus Bank received shareholders’ green light to raise around €1bn ($1.19bn).
