Greece to sell 10% stake in National Bank of Greece, targeting up to €727 million

Greece is poised to sell a 10% stake in the National Bank of Greece (NBG) as it continues its broader privatization efforts, which have seen the state reduce its holdings in several major banks over the past year.

The Hellenic Financial Stability Fund (HFSF) announced the price range for the sale on Monday, setting it between €7.30 and €7.95 per share.

Potential to raise up to €727 million

At the upper end of the pricing range, which is slightly higher than last Friday's closing price of €7.84, Greece could generate up to €727.2 million ($812 million) from the sale, according to a report in Bloomberg.

The books for the transaction are expected to close on Wednesday at 2 pm London time.

This marks a significant step in the country’s banking sector reform, with the Greek government having fully exited other major lenders such as Eurobank Ergasias Services and Holdings, Alpha Bank, and Piraeus Bank in recent months.

While Greece is reducing its stake in NBG, it will retain an 8.4% holding in the bank.

Privatization marks continued economic recovery

This sale comes on the heels of a 22% stake sale in National Bank by the HFSF in November, which raised €1.06 billion.

Greece's economy has been on an upward trajectory, outperforming many of its European counterparts.

The country regained its investment-grade status last year, a notable achievement after losing it during the 2010 debt crisis.

The non-performing loan ratio in Greek banks has also significantly improved, aligning more closely with European averages.

Another sign of Greece’s return to economic stability is the reintroduction of dividend payments by Greek banks this year, the first time since 2008 that they have been permitted to do so.

European markets open lower amid economic uncertainty

European shares began the week on a cautious note, with the pan-European STOXX 600 index falling 0.1% to 527.47 points by early trading on Monday.

Despite this dip, the index is on track for a third consecutive month of gains, its longest winning streak in seven months.

A stronger oil sector helped mitigate some of the losses, as oil prices rose due to escalating tensions in the Middle East.

Investors are also keeping a close eye on a series of upcoming economic reports, including Germany’s preliminary inflation data for September and similar figures from Italy, as well as Britain’s second-quarter GDP results.

ECB president Christine Lagarde’s comments awaited

Market participants are also awaiting a speech by European Central Bank (ECB) President Christine Lagarde, scheduled for later in the day, which could provide insights into the bank's policy outlook amid the ongoing economic challenges in the region.