The press on September 8, citing sources, reported that the European Bank for Reconstruction and Development (EBRD) was looking to take a stake in Cyprus-based Hellenic Bank according to Cyprus Weekly sources.

“In relation to publications in the Media regarding the possibility of participation of the European Bank for Reconstruction and Development (EBRD) in the share capital of Hellenic Bank Public Company Limited (“the Bank”), the Bank announces that it is in the process of negotiations with EBRD,” Hellenic Bank said in an announcement on the Cyprus Stock Exchange (CSE) on Monday morning.

The triple A-rated investment bank could take up to 10% in Hellenic, according to the source, making it the third largest shareholder after Wargaming and Third Point.

The EBRD, a bank owned by 64 member countries as well as the European Investment Bank and the European Union, invested €107.5 million in Bank of Cyprus during the €1 billion recapitalisation in August 2014, giving it a stake of 5.021%.

Hellenic’s very strong liquidity position makes it a good target for investors. It had a net loan to deposit ratio of 51% at the end of June according to its most recent results, and unlike Bank of Cyprus does not depend on either emergency or inter-bank liquidity for funding.

It reported a profit of €0.5m in the first six months of 2015. Hellenic’s Common Equity Tier 1 capital ratio is a comfortable 13.5%. However, like other Cypriot banks it suffers from a high non-performing loan ratio, at 60.5% according to European Banking Authority definitions in June.

Source: InCyprus