ATHENS, Nov 3 (Reuters) - Greece's Piraeus bank BOPr.AT on
Tuesday announced plans to issue new shares to raise up to 4.9
billion euros to plug a capital shortfall showed in ECB's health
checks.
Piraeus will also issue contingent convertible securities of
up to 2.04 billion euros, it said in a bourse filing, and called
an extraordinary shareholders meeting on Nov. 15 to get its plan
approved.
A health check by the ECB last weekend showed the four main
Greek banks had a 4.4 billion euro capital shortfall under a
"baseline" scenario of normal economic conditions prevailing in
the country, and a 14.4 billion euro gap under an adverse
scenario.
Piraeus has a capital shortfall of 4.93 billion euros under
the adverse scenario of its stress test.
If Greek banks cover the baseline 4.4 billion gap from
private investors, the state bank bailout fund HFSF will supply
the remainder, up to the 14.4 billion defined in adverse
conditions, by buying a mix of new shares and contingent
convertible bonds (CoCos), which convert to equity if capital
buffers fall below a certain level.