Alpha Bank raises enough capital to avoid state control

Alpha Bank raises enough capital to avoid state controlAlpha Bank form Greece has been able to raise enough capital from the investors in order to avoid a takeover by the state indicating that the bank might be able to survive through the prolonged financial crisis in the country.

With the successful capital raising, Alpha Bank has become the first bank in the country to avoid to meet its targets and avoid being nationalized. Banks in the country that are not being able to sustain themselves are being bailed out by the national rescue fund in the country to avoid an all-out banking collapse. Banks are required to raise about a tenth of their capital needs from private investors in order to avoid being nationalized.

Alpha Bank, which is the third largest lender in Greece, said that foreign investors invested significantly in its rights issue and private placement in the previous month that helped the bank meet the target for capital. Alpha Bank required 4.57 billion euros or about $5.94 billion in order to sustain itself and avoid nationalisation.

The bank was able to raise 457 million euros through rights issue and private placement, in which it recorded 1.65 times demand from eh investors. The remaining amount is set to be provided by the 50 billion euro bank rescue fund.