Estimates of the amount of the required increase in the authorized capital are “reduced”. Attica Bankcontributing, according to indications, to the restoration of the bank’s capital position due to the securitization of a portfolio of non-performing loans in the amount of 2 to 2.6 billion euros. At the same time, administrative changes are accelerating with the election of Eleni Vretto as the new Managing Director, who will replace the current interim management under Michalis Andredis, a fact that is interpreted as a step forward in an attempt to restructure Attika Bank.

According with information from “K”, required by AMC is determined to be close to 400 million euros out of the 600 million that was the most recent estimate. This amount is close to the €365m capital increase agreed at the end of December following Attica Bank’s first €240m share capital increase, which involved Ellington and TMEDE with €55m, while the remainder of the increase was covered by HFSF. The cap on Attica Bank’s capital requirements is due to the fact that DBRS, which has assessed the securitized portfolios, provided an approximately 30% better price, which limits the capital cost of securitization. According to the same information, the valuation concerns two of the three securitizations, namely the Astir I and II portfolios of 320 and 370 million euros respectively, for which capital expenditures are estimated at around 200 million euros.

This facilitates the recovery of the bank’s capital position due to the securitization of bad loans.

It is recalled that Attica Bank’s plan includes the securitization of three or four portfolios, i.e. Omega worth 1.3 billion euros, Astir I and II worth 320 and 370 million euros respectively, and possibly the securitization of another portfolio, Metexelixis, worth 670 million euros. euro and was securitized in 2018 with Pimco as an investor. The DBRS valuation is proceeding in stages, depending on the number of portfolios, and after the valuation of Astir I and II, the valuation of the third securitization, i.e. Omega, is expected by the end of August. The goal is for Attica Bank’s management, in cooperation with shareholders, to present the bank’s capital and development plan to the Board of Governors in early September. According to the same information, to the extent that the latest securitization is carried out with similar assumptions, AMK will not exceed 400 million euros, an amount that is considered high, but does not match the latest estimates, which even spoke of more than 600 million euros.

As for the leadership change – it has been in the works for several months – Eleni Vrettos’ predominance among the roughly seven nominations is estimated to ease the page turning process for the bank and is said to be supported by all shareholders, i.e. TXS, TMEDE and Ellington. As a reminder, Ms. Vretto comes from the banking sector and has previously held an executive position at HSBC and most recently at Piraeus Bank, and currently holds the position of Director of Strategy and Investor Relations at Lamda Development. Its placement is expected during September.

Finally, with parallel actions, Attica Bank is implementing the procedure for issuing 271,448,946 free warrants in favor of the Greek state, and the expiration date for the rights of existing shareholders will expire on September 8th. Given that the existing shareholders do not intend to exercise the rights, the securities will be converted into shares and transferred to HFSF, which will thus further increase its stake in Attica Bank from the current 63% to around 68%.