€690 million are the total proceeds to the state from the public offer for 10% of the National Bank of Greece, according to the final results announced by the HFSF. "The privatisation of 10% of National Bank, which has just been completed, is a significant success for the Greek economy. Especially if we take into account the fact that it coincided with a period of great uncertainty in the markets due to the intensification of the crisis in the Middle East," said Economy and Finance Minister Kostis Hatzidakis. 

As noted in the announcement, the HFSF completed the sale of its 10% stake in the share capital of the National Bank, which now stands at 8.39% from 40.4% before the disinvestment. The public offer, which was successfully completed today, attracted considerable interest from both Greek and foreign investors, with total demand amounting to €7.2 billion and the total transaction value reaching €0.7 billion.

Andreas Verykios, Chairman of the Board of Directors of the HFSF, expressed his satisfaction with the successful completion of the transaction. The HFSF, following the latest amendment of its law, has set as its mission on a par with the maintenance of financial stability and the return of the banking system to the private economy. The HFSF has met both of these objectives with absolute competence and success. By capitalizing on the country's regaining of investment grade status and the prospects it creates, with the right strategic choices, the HFSF has made the banking sector capable of attracting international investment interest and the country's banking institutions an investment destination with the participation of strong international long-term investors. The achievement of these objectives is a strong legacy for the country's banking system and the dynamics of the national economy. Congratulations to the entire team of the HFSF for carrying out this extremely challenging task.".

HFSF CEO, Mr. Elias Xirouhakis, said: "With the new successful disposal of a significant portion of the shares of National Bank still held by the Fund, the Fund's divestment programme from the systemic banks is completed in a way that is highly beneficial to the interests of the Greek public sector. The oversubscription of the transaction (12 times for the international book, 1.5 times for the Greek book and 10.4 times for the total offer), in a climate of unpredictable and strong geopolitical tensions and strong fluctuations in international markets, is undoubtedly a very important achievement.

It should be noted that the current offering has managed to surpass in terms of coverage the previous divestment by Piraeus Bank, which was the most successful placement of shares of a financial institution through a Public Offering at a pan-European level to date.

The very successful divestment of the HFSF from the National Bank of Greece demonstrates in the most emphatic way the absolute confidence of the markets in the promising prospects of the Greek financial system and the stable momentum of the Greek economy. At the same time, it is an unquestionable recognition, at an international level, of the Fund's contribution to the full recovery of the banking sector and to the establishment of a strong climate of investor confidence in the country.

The admittedly very positive result of the Fund's public offering of shares of National Bank of Greece rewards the systematic and painstaking effort made by all parties and proves the correctness of the strategic choices made.

I recall that in a period of about one year, the HFSF and its executives have successfully implemented five divestment transactions, as well as a sixth programme concerning Attica Bank and its merger with Pancretia Bank, with an excellent level of professionalism, high expertise, and immediate response in the best possible way to every challenge that presented itself. For this reason, they deserve credit and my warmest thanks for their support, their painstaking and effective efforts that led, once again, to this very successful divestment transaction.

The National Bank now has new prospects after the second part of the divestment and multiple options for further dynamic growth in the coming years. I also take this opportunity to express my sincere thanks to its Management for the very good cooperation that led to this excellent result. And I would like to reiterate my thanks to the State for the confidence it has shown in the Fund for undertaking, elaborating and, ultimately, implementing a highly challenging project with great success."

The results of the Public Offer

The Offering closed on October 2, 2024 and a total of 91,471,515 Offer Shares were tendered.

By decision of the Board of Directors of the HFSF taken on 1 October 2024, a narrower price range within the price range between €7.40 and €7.65 per Offered Share was decided.

By decision of the Board of Directors of the HFSF taken on 2 October 2024, applications to purchase Offer Shares below €7.55 will most likely not be considered for the allocation of the Offer Shares.

By decision of the Board of Directors of the HFSF taken on 2 October 2024, the offer price of the Offer Shares ("Offer Price") was set within the narrowest price range (€7.40 - €7.65) at €7.55 per Offer Share.

According to the above decision of the Board of Directors of the HFSF taken on 2 October 2024, of the Offer Shares:

(i) 13,720,727 Offer Shares (i.e. 15% of the total Offer Shares) were allocated to investors who participated in the Greek Public Offer. Specifically:

(a) According to the prospectus for the Greek public offer that the EC approved on September 30, 2024, or the "prospectus," retail investors received 9,604,509 offer shares, or 70% of the offer shares allotted in the Greek public offer; and

(b) 4,116,218 Offer Shares (i.e. 30% of the Offer Shares allocated in the Greek Public Offer) were allocated to Special Investors (as defined in the Prospectus).

(ii) 77,750,788 Offer Shares (i.e. 85% of the total Offer Shares) were allocated to investors who participated in the International Offering.

Taking into account only the valid subscriptions, the total demand expressed in the Offer (i.e. cumulatively through the Greek Public Offer and the International Offer) amounted to 954,799,136 Offer Shares, exceeding the total number of 91,471,515 Offer Shares to be allocated through the Offer by approximately 10.4 times.

In particular, taking into account only valid subscriptions, the total demand expressed in the Greek Public Offer amounted to 20,788,653 Offer Shares, exceeding the 13,720,727 Offer Shares allocated in the Greek Public Offer by approximately 1.5 times, divided as follows:

(a) the demand from the 3,630 purchase applications of Private Investors submitted in the Greek Public Offer represents 12,492,169 Offer Shares, exceeding the 9,604,509 Offer Shares allocated to this class by approximately 1.3 times; and

(b) the demand from the 65 purchase applications of the Special Investors submitted in the Greek Public Offer represents 8,296,484 Offer Shares, exceeding the 4,116,218 Offer Shares allocated to this class by approximately 2.0 times.

Accordingly, following completion of the Offer, all of the Offer Shares were sold.

Before deducting the costs associated with the offer that the HFSF will bear, the total amount of money that the HFSF will raise from the offer is €690,609,938.25.

Pursuant to the underwriting agreement for the Greek Public Offer, the Coordinating Lead Underwriters of the Greek Public Offer have not made any commitment to underwrite the Offer Shares. In addition, it is noted that the Coordinating Lead Underwriters of the Greek Public Offer have not applied to participate in the Greek Public Offer on their own account.

The expected date on which the Offer Shares will be credited to the securities accounts of investors in accordance with the procedure set out in the Hellenic Central Securities Depository Regulation is set on 7 October 2024 (the "Settlement Date"). It is noted that the specified Settlement Date is subject to a number of unforeseen factors and is therefore subject to change. In any case, the HFSF will make an announcement to inform investors.

STOURNARAS STATEMENT

"The Bank of Greece welcomes the completion of the sale by the Hellenic Financial Stability Fund (HFSF) of 10% of the share capital of the National Bank of Greece," said Bank of Greece Governor Yannis Stournaras on the public offer for the 10% stake in National Bank.

"The transaction is another important step in the process of privatisation of Greek banks. The significant participation of Greek and foreign investors reflects the increased credibility of the Greek economy in recent years. It also reflects the significant progress that has been achieved in the Greek financial system and its prospects, which allowed the HFSF to proceed with the successful increase," he added:

"Congratulations are due to the contributors to this great success and in particular to Mr. Elias Xirouhakis (CEO of the HFSF) and his colleagues and Mr. Pavlos Mylonas (CEO at the National Bank of Greece) and his colleagues."

HATZIDAKIS STATEMENT

"The privatisation of 10% of National Bank, which has just been completed, is a major success for the Greek economy. Especially if we take into account the fact that it coincided with a period of great uncertainty in the markets due to the intensification of the crisis in the Middle East," said Minister of National Economy and Finance Kostis Hatzidakis. 

The international offer - with the participation of world-class institutional investors - was exceeded by 12 times and the total offer by 11 times, the minister added, speaking of a performance that is a new record for the banking sector in the Greek market, while the offering price of the shares was 42% higher than the issue held in November.

"This is the eleventh privatisation to be completed after the June 2023 elections. It is a record both in terms of the number of privatisations carried out and the revenues secured by the State through the HFSF and the Hellenic Investment Fund, which exceed EUR 7.8 billion.

The privatisation programme constitutes a vote of confidence by foreign and Greek investors in the prospects of the Greek economy and the banking system in particular. Congratulations to the management of the HFSF and NBG", concluded Mr Hatzidakis.