National Bank of Greece S.A. ('NBG') announces the signing of a definitive agreement with OTP Banka Srbija a.d. Novi Sad ('OTP Serbia') for the divestment to OTP Serbia of its 100% stake in its Serbian subsidiaries Vojvodjanska Banka AD ('VOBAN') and NBG Leasing doo ('NBG Leasing') and of a portfolio of Serbian-risk corporate loans (together the 'Transaction').

The agreed consideration for the share capital of VOBAN and NBG Leasing amounts to €125 million, representing a Transaction multiple of c. 0.75x P/TBV(1). The Transaction is expected to increase NBG's CET1 Ratio by c.30 bps(2) and, taking into account the repayment of the intra-group debt, strengthen its liquidity position by c.€280 million.

Leonidas Fragkiadakis, NBG CEO said: 'After over 15 years of successful presence in Serbia, NBG divests from its Serbian operations to deliver on its commitments to the European Authorities under the Restructuring Plan. The Transaction further strengthens NBG's position in terms of capital and liquidity, allowing for the redeployment of resources to support the Greek economic recovery'.

Closing of the transaction is subject to approval from the National Bank of Hungary, the National Bank of Serbia, the General Council of the Hellenic Financial Stability Fund and anti-trust approvals.

Credit Suisse International is acting as exclusive financial advisor to NBG. Freshfields Bruckhaus Deringer is acting as international legal counsel and Bojovic & Partners as local legal counsel to NBG.

Note 1: Based on the Τangible Book Value of 31.12.2016
Note 2: Impact on CET 1 ratio as of 31.03.2017

National Bank of Greece SA published this content on 04 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 04 August 2017 14:49:01 UTC.

Original documenthttps://www.nbg.gr/en/the-group/press-office/press-releases/nbg-otp-agreement

Public permalinkhttp://www.publicnow.com/view/885038507CB93360C7DA02796FB0612AFB9465F9