Creating a New Banking Hub in Greece
The Greek banking system was in desperate need of a new banking hub. The shrinkage of the banking sector after the crisis, with the closure of many banks and a plethora of bad loans, left a significant gap in the industry’s development, which seems to have transitioned to the next day. If one were to look for the gaps in the banking system, they would realize that perhaps the most important of all is that small and medium-sized enterprises, especially small businesses, struggle to find their way in.
Transforming the Banking Sector
A new banking hub has been established with the goal of financing small and medium-sized enterprises, creating a banking culture that provides solutions beyond conventional options, and strengthening a banking sector based on modern economic trends that cater not only to large clients.
Shareholders have committed to bolstering the capital of Attica Bank by contributing up to 675.1 million euros in cash, with the Hellenic Financial Stability Fund contributing a maximum of 475.1 million and up to 200 million to be contributed by other investors.
Capital Increase at Attica Bank
Attica Bank is planning to increase its capital through the contribution of funds from Thrivest. This capital increase will be used to strengthen the bank’s financial position and support its growth strategy.
Preferred Rights for Existing Shareholders
Existing shareholders of Attica Bank will have preferred rights to participate in the capital increase. Additionally, warrants will be issued to allow shareholders to acquire more shares in the bank at a later date, providing an opportunity for further investment.
Expected Funding and Ownership
The capital increase is expected to raise up to 735 million euros, with warrants amounting to 60 million euros. Following the increase, Thrivest is expected to hold a stake of at least 35% in Attica Bank, further solidifying its commitment to the bank’s success.
Thrivest to Increase Stake in Attica Bank
Thrivest is expected to increase its stake in Attica Bank, holding between 50% and 58.5% of the bank’s capital and voting rights. The percentage may rise if Thrivest chooses to invest more than the initial €200 million as part of a capital increase.
Timeline and Future Plans
The journey towards becoming the 5th pole started in 2022. Specifically, on March 17, 2022, the deal was signed, marking the beginning of a new chapter for Attica Bank. Thrivest’s increased involvement is set to bring about significant changes in the bank’s operations and strategic direction.
Corporate Restructuring and Modernization Agreement with Attica Bank
An agreement was reached with Attica Bank, outlining the framework for corporate restructuring and modernization, following the example of other banks but with some differences, taking into account that Attica Bank is not a systemic bank. The terms of the transaction were modified on January 31, 2022, with a new agreement being signed on September 30, 2022. In 2023, there were significant developments, such as the withdrawal of Rinoa LTD – Ellington Solutions A.E. from the investment agreement and the signing of a new investment agreement with Thrivest Holdings LTD and Panagr.
Attica Bank Successfully Completes Capital Increase
Attica Bank has successfully completed its second capital increase on April 26, 2023, raising €473,346,868.50, with €329 million contributed by the Fund. Thrivest has been a reliable partner, providing the necessary capital to finalize the agreement, ensuring prospects for strategic development and the new direction of Attica Bank, while also guaranteeing the creation of the fifth banking pillar.
Introducing “Hercules III”
Regarding the model of the new bank to be established, the Hercules III project will focus on innovation, digitalization, and customer-centric services. The aim is to create a modern and efficient banking institution that meets the evolving needs of customers in the digital age.
Agreement reached to cover capital requirements for Greek banks
Shareholders have agreed to cover the capital needed to absorb the non-performing loans of Attica and Pancretan banks into “Hercules III”, with any remaining gap to be filled through increases in share capital. The funds will finance the gap in the banks’ balance sheets resulting from the write-off of non-performing loans, as well as for development purposes.
The rescue of Attica Bank and Pancretan Bank was crucial for the entire banking system, as failure to do so would have posed the risk of a haircut.
The Creation of a New Bank in Greece
By the end of the year, a new bank will be established in Greece, with all the potential consequences that such an action could have on the banking system. Thrivest has invested 140 million euros in Attica Bank and Pancretan Bank, in addition to the 200 million euros it is called to place as a capital increase.
Attica Bank’s assets (as of 2023) amount to 3.77 billion euros, while Pancretan Bank’s assets total 3.45 billion euros. Pancretan Bank has deposits of 2.6 billion euros, whereas Attica Bank has deposits of 3.15 billion euros. The pre-tax profits for the year 2023 reached 90.8 million euros for both banks.
Crete Bank Acquires Majority Stake in Attica Bank
Crete Bank has successfully acquired a majority stake in Attica Bank for 28.6 million euros. This acquisition marks a significant milestone for Crete Bank, as they now hold a controlling interest in Attica Bank. Additionally, Crete Bank, along with Thrivest Holding, already own 9.4% of Attica Bank, further solidifying their position in the banking sector.
