Greece secured 1.06 billion euros for 22% of National Bank of Greece

Greece sold a 22% stake in the National Bank of Greece (NBG) for 1.06 billion euros ($1.15 billion), the third divestment made by the Greek state in the past two months, according to Bloomberg.

The Financial Stability Fund of Greece (HFSH) - the rescue vehicle that holds the government's stakes in the country's commercial banks - priced the shares at 5.30 euros each, according to a statement it sent on Friday. The price range for the sale of the share in NBG was set at 5 - 5.44 euros per share. We remind you that the HFSF injected approximately 50 billion euros to recapitalize the country's banks during the financial crisis.

The demand for NBG shares was high enough for the stability fund to decide to increase the number of securities offered for sale up to 22%. HFSF's remaining holding in NBG now stands at just over 18%.

Greece is moving ahead with its plan to exit banks it has invested in by the end of 2025, a sign that the economy and financial sector are returning to normal after a decade-long debt crisis. Several rating agencies, including S&P Global Ratings, have raised Greece's rating back to "investment grade", with the country's economy growing faster than most European states.

This autumn, the Financial Stability Fund of Greece sold shares in Eurobank Ergasias Services & Holdings SA and Alpha Bank. On Monday, the fund also completed the sale of the 9% stake in Alpha Bank to UniCredit SpA. HFSF also owns stakes in Piraeus Bank (27%) and Attica Bank (65.9%), according to Bloomberg.

• Annual profit of over one billion euros, estimated for the period 2023-2025

NBG promises investors a high return at least until 2025, according to businessdaily.gr. The group aims to achieve core profitability after tax of over one billion euros per year in the period 2023 - 2025, with earnings per share exceeding euro1.10 over the same period, and a return on capital of over 15% for 2023 , respectively 13% for 2024 and 2025.

According to the quoted source, regarding the dividend policy, the objective is to distribute up to 30% of the profit to shareholders.