The 500-page document presents in detail the financial status quo and future plans of BoC and includes the various steps in the process to issue capital.
BoC is looking to yield about €1 billion in new capital aiming to increase its common equity tier 1 to 15% up from the current 10.6%, while any new shares will be listed on the stock markets in Cyprus and Athens.

In the long term, the bank will consider listing the shares at a major stock market in Europe.

Based on the plan outlined in the leaflet, all applications from interested investors must be handed in by the end of July and will be reviewed by the international advisors HSBC, Credit Suisse, Deutsche Bank and VTB who will determine the final list of investors, the investment amount and the price.

A public announcement will be made by the end of July to announce the open tender for shares and call an emergency general assembly.

More details will be published for current shareholders who will have to make bids higher than €100,000 and may purchase up to 20% of the issued shares.
The open tender for shares will take place between the end of July and August and the general assembly will be held at the end of August to beginning of September following a notification 21 days prior to the event.

The general assembly will have to approve by 75% majority the issuance of shares to the interested parties, the application to the court for a reduction of the face value of shares to below €1 and the non-implementation of the right to first choice that the current shareholders have at the moment.

The judicial procedure is expected at the end of August to beginning of September and the notifications to new shareholders will be sent at the end of September to beginning of October.

Capital issuance of at least €1 billion is a requirement of the Central Bank which requested that the procedure is sped up, while it was originally thought that it would be completed by the end of August.

The extension of the process until October increases the possibility for changes to the positive climate that has prevailed in the markets over the previous months regarding European banks, which have rushed to increase their capital in light of the stress tests that will be completed in October.

Source: InCyprus