Piraeus Bank plans to raise €800 million of capital through issuance of rights

The Bank has received underwriting commitments, subject to customary conditions, in respect of the full amount of the Rights Issue from Barclays Capital, Credit Suisse, Goldman Sachs International and Morgan Stanley, which will act as Joint Global Coordinators (JGCs) for the Rights Issue. The subscription price for the capital increase will be determined prior to the launch of the Rights Issue (expected to be in January 2011).

The proposed capital increase aims to strengthen the Bank's capital position in anticipation of a stricter regulatory environment and to fulfill higher investor expectations, enhance the Bank's position in the context of the macro-economic conditions in Greece, and allow the Bank to take advantage of attractive organic growth opportunities in the region.

The Bank has agreed to a 180-day customary lock-up provision following the date of completion of the Rights Issue.

At the EGMs, the Bank also intends to seek shareholders' approval for the issuance of convertible bonds for up to €250 million with waiver of pre-emption rights, in order to further improve the financial flexibility of the Bank, and to increase the ability to strengthen its capital base as appropriate. The specific terms of any convertible bond offering will be set by the Board of Directors of the Bank prior to the launch of any such offering, which will also be subject to the above mentioned lock-up period.

The EGMs are expected to be convened at the first call on November 23, 2010. Following approval by that or a subsequent repeat EGM, the Rights Issue is expected to be launched in January 2011. The specific terms of the Rights Issue will be set by the Board of Directors of the Bank prior to the its launch.