Fairfax, other institutional investor take big stake in Greek bank

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International investors, including Fairfax Financial Holdings Ltd. (TSX:FFH), have agreed to invest 1.33 billion euros or just over C$2 billion in financially troubled Eurobank, the third-largest bank in Greece, the Hellenic Financial Stability Fund says.

HFSF says the investors, who also include Capital Research and Management, Wilbur Ross, Fidelity, Mackenzie and Brookfield, are taking up 47 per cent of the newly issued ordinary shares of Eurobank at 30 euro cents per share.

The remaining amount of the share capital increase will be covered via a book building process for international and other qualified investors and a public offering in Greece, the HFSF said.

“Today the cornerstone investor phase of Eurobank’s share capital increase has been successfully completed with the commitment of highly reputable and experienced investors,” fund CEO Anastasia Sakellariou said.

“We are looking forward to the full coverage of the share capital increase with private participation at the final price which will be determined via the book building process.”

Sakellariou added that the strong interest of “quality investors” in the Greek banks, underscores the “strong progress achieved in the turnaround of the Greek banking sector.”

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