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Repeat Extraordinary General Meeting

The Repeat Extraordinary General Meeting of Eurobank EFG that convened today in Athens decided to issue 2 new shares for each 15 old shares, at a price of € 20 per share, in favour of existing shareholders.

Shareholders approved the relevant proposal by the Board of Directors of the Bank. CEO Mr Nicholas Nanopoulos stated that: “The capital increase of € 1,229 million,  is dictated by the necessity to further strengthen our Group strategy. Our strategy aims to create  a strong, international financial group with an active role and a competitive and successful presence in a wide geographic region that stretches from Central Europe to the Eastern Mediterranean. The capital to be raised will enhance our capacity to act on opportunities emerging in our wider geographic area. Our region experiences globalization and rapid growth, fosters opportunities for those who are capable and ready to exploit them. Within this framework, we will continue our dynamic growth through targeted acquisitions and faster organic growth, both in the countries where we are already present and in other countries that offer great growth potential and opportunities that we can exploit. We look at the conditions, analyze the economic conjuncture and seek the most promising options in each country, thus achieving our goals in the best possible way”.

According to the EGM decision, which approved the terms of the capital increase, the new shares will be issued  at the price of € 20 per share, which represents a discount of 25.3% over the closing price on August 1, 2007. The Board of Directors will set the precise ex-rights date, as well as the subscription period dates, following the necessary approvals by the relevant authorities. The ex-rights date is expected to be August 27, 2007 while the subscription period is expected to be from August 31 to September 14, 2007. The new shares will be entitled to dividends from the current financial year results. The new shares are expected to be listed on the Athens Exchange during September. Eurobank retained the services of Citigroup Global Markets Limited, Deutsche Bank AG and Lehman Brothers International (Europe) as advisors in the context of the rights issue.

CEO Mr Nanopoulos also referred to the activities of the Group both in Greece and internationally, stating: “The dynamic course of growth of our Group, both within Greece and outside its  borders, the apparent prospects and our strong performance in all of the countries and all of the business segments in which we are active, led us to revise upwards and extend the financial targets of profitability and efficiency until the year 2010,  that had been announced in February 2007. Specifically, the Group aims for:

  • Group Net Profit at least €820 million  in 2007 and €1,550 million in 2010
  • New Europe Net Income at least €60 million in 2007 and €550 million in 2010 (contributing more than 35% to Group profits)
  • Cost to Income Ratio for the Group below 45% in 2010
  • Group ROE above 25% in 2010

Our targets are ambitious, but achievable. I can assure you that we have the ability, the means, the will and the quality personnel to meet these targets, always with respect towards our shareholders and our clients. Our strategy focuses on ensuring growth prospects for the longer-term, and safeguarding -with even greater intensity- sustainable, healthy profitability. Our people, which constitute our greatest competitive advantage, are committed to our common goals and their undisputable skills guarantee the best result.”

These materials are not an offer of securities for sale in the United States, Australia, Canada or Japan.  The securities to which these materials relate have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act.  There will be no public offering of the securities in the United States.

These materials are not a public offer or advertisement of securities in Greece, and are not an offer, or an invitation to make offers, to purchase any securities in Greece. Any investment decision should be based solely on the information contained in the approved by the HCMC Prospectus, which will be available within August 2007, in Athens,  and not on the contents hereof.