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Actionable news in NBG: NATIONAL BANK OF GREECE S.A.,

Greek Banks' Share Sales Said to Draw Orders at Minimum Levels

National Bank of Greece SA and Piraeus Bank SA are drawing orders from investors at the lowest price at which they’re allowed to sell shares, according to people familiar with the capital increases.

Pricing at that level could mean discounts of more than 90 percent compared with the stocks’ market prices, said the people, who asked not to be named because order-taking continues and bids may still come in at higher prices.

Alpha Bank AE, which is also selling stock, has received orders for all the shares that are on sale, said Chief Financial Officer Vassilios Psaltis. Eurobank Ergasias SA, National Bank and Piraeus have yet to cover the share sales, two people said.

In a year that has been fraught with political uncertainty, forced bank holidays and a market shutdown amid a government standoff with creditors, the lenders are asking investors for new capital for the second time in less than 20 months. The people said that investors so far are reluctant to place orders and the success of the exercise will depend on whether the country’s government strikes a deal with creditors this week, which will restore the normal flow of public funds to backstop the recapitalization process.

Stock Decline

“The market is placing a lot of emphasis on whether the Greek government can reach an agreement with Europe to clear the way for more funds,” said George...


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