Greece to raise around $1 billion through sale of 12% stake in National Bank

The Greek government is expected to raise around 900 million euros ($1 billion) through sale of a 12 per cent stake in the National Bank of Greece (NBG), the country’s second-largest lender by market value.

With NBG shares trading at 7.64 euros on Tuesday, the sale of a 12 per cent stake in the bank is expected to fetch around 900 million euros ($1 billion).

The bailout fund HFSF, created by the Greek government, will kick start the process of selling up to 12 per cent stake in National Bank of Greece (NBG) next week.

HFSF holds 18.4 per cent stake in NBG, Greece's second largest lender by market value. The remaining 6.4 per cent stake will be transferred to the country’s sovereign wealth fund.

With the reprivatisation of banks, Greece is trying to retrieve the money invested in the banks that were taken over in a bail-out during the debt crisis. The bail-out had made the country euro zone’s most indebted member. 

With the sale of stake in the National Bank, Greece will complete the process of re-privatisation of its banks.

Reports citing bank officials said the shares will be offered to institutional investors – both domestic and overseas – through a combined offer.

HFSF has already sold stakes in lenders, including Eurobank, Alpha Bank, Piraeus Bank and part of its stake in NBG in the latter half of 2023 and early this year.