Greece's Bank Bailout Fund to Sell Stake in National Bank of Greece

Greece's bank bailout fund, HFSF, will start selling up to a 12% stake in National Bank of Greece next week, concluding the re-privatisation of its banks. The sale will involve a transfer of the remainder stake to Greece's sovereign wealth fund and is set at a small discount to market price.

Greece's bank bailout fund HFSF will initiate the sale of up to a 12% stake in the National Bank of Greece early next week, two officials with insider knowledge revealed on Tuesday.

This planned sale will mark the final phase of Greece's efforts to re-privatise its banks, which were bailed out amid a debt crisis that nearly forced the nation out of the euro zone. 'Our plan is to start the sale of 10%-12% on Monday and finalize it by Wednesday,' an official informed Reuters.

HFSF currently holds an 18.4% stake in National Bank (NBG), the country's second-largest lender by market value, with the remaining shares to be transferred to Greece's sovereign wealth fund. 'The shares will be offered at a slight discount to the current market price,' the official elaborated.

On Tuesday, NBG shares traded at 7.64 euros, valuing a 12% stake at approximately 900 million euros ($1 billion). Another official confirmed the sale's schedule, adding that the shares would be offered through a combined approach targeting both international and domestic investors.

Earlier this year and late in 2023, the fund sold its stakes in Eurobank, Alpha Bank, Piraeus Bank, and a portion of its holdings in NBG. ($1 = 0.8989 euros)

(With inputs from agencies.)