Piraeus Bank (Cyprus) Ltd
Home  / Press / Archive / Press Releases / Piraeus Bank Cyprus: €40 million increase of capital
Piraeus Bank Cyprus: €40 million increase of capital
Bookmark and Share Zoom out Zoom in Print-Friendly PageEmail a Friend

PRESS RELEASE

29 December 2016

Piraeus Bank Cyprus: €40 million increase of capital
All approvals granted from the supervisory authorities

The European Central Bank, following a recommendation from the Central Bank of Cyprus, has approved the participation agreement of Holding M. Sehnaoui SAL (“HMS”) as the main investor, along with a number of other investors with smaller shareholding levels, into the share capital of Piraeus Bank Cyprus.   A capital increase at the amount of €40 million was completed yesterday which raises the Core Equity Tier 1 capital ratio of the Bank to a level in excess of 15%, significantly above the minimum regulatory requirement. In parallel, HMS has acquired a direct stake in PBC such that Piraeus Group's participation in Piraeus Bank Cyprus stands at 17.7%. PBC’s capital increase and the addition of experienced international bankers as shareholders of the Bank materially improve the prospects of PBC and its capacity to harness the benefits stemming from the growth in the economy activity in Cyprus, as well as the improvement of the banking sector, by further enhancing its activities and increasing its market share. 

The lead new investor in the Bank, with approximately the same participation as Piraeus Group, will be the Chairman of HMS, Mr. Maurice Sehnaoui, a Lebanese banker with international experience exposure in Lebanon, Jordan and Cyprus.  He has successfully managed many banks for more than 30 years as President, CEO and shareholder, continuously introducing innovative products and practices.

Statement by the President of HMS Mr. Maurice Sehnaoui
“We are very pleased and proud that our participation agreement in Piraeus Bank Cyprus is now officially approved by all the relevant supervisory authorities.  Starting from tomorrow, we will put forward our ambitious plans for the strengthening of the Bank and the expansion of its activities in Cyprus.  We expect strong growth and profitability that will benefit not only our diversified shareholding base but also our customers, our employees and the economy at large.  We are strong believers in the economic prospects of Cyprus and we are confident of the further and continuous development of the country.  We trust both the management and the staff of Piraeus Bank Cyprus, as through adversity and tough conditions, they have managed to increase the client base and the international business activities of the Bank.  We welcome the participation of Piraeus Group in the new shareholding structure and would like to thank them for their cooperation in completing this transaction."

Statement by the Deputy CEO of Piraeus Group (Greece), Mr George Poulopoulos
"We are pleased with the completion of the capital increase of Piraeus Bank Cyprus by HMS and a number of individual investors. The enhanced capital base of the Bank will assist Piraeus Bank Cyprus to further exploit business opportunities and improve its customer services. We are confident and optimistic for the prospects of both the Bank, as well as the economic developments in Cyprus.”