National Bank of Greece ADR (fka NBGGY)

[LiquidStorm]

National Bank of Greece (NBG) said on Friday it will ask shareholders on Nov. 17 to approve a plan to issue new stock and contingent convertible bonds (CoCos) to plug a capital hole revealed in a European Central Bank stress test.

The ECB's health check showed that NBG, the country's biggest bank, had a capital shortfall of 1.57 billion euros ($1.69 billion) under a baseline scenario and a 4.6 billion euro gap under an "adverse" scenario.

NBG said it plans to issue new common shares to raise up to 4.6 billion euros. The shares will be placed privately with foreign investors and also sold in Greece through a public offering.

Current shareholders will waive their rights to the share offering.

NBG has also said it plans to sell its Turkish subsidiary Finansbank as part of moves to plug the capital gap, though the sale is not expected to be concluded before the end of the year.

The bank's CEO has said capital generated from the sale will be used to replace any interim state aid in the form of CoCos. ($1 = 0.9312 euros) (Reporting by George Georgiopoulos; editing by David Clarke)


http://www.reuters.com/article/2015/11/06/greece-nbg-idUSL8N13158V20151106