Piraeus Bank agrees the sale of Piraeus Bank Cyprus

Piraeus Bank S.A. (“Piraeus” or the “Group”) announces that it has entered into an agreement with Holding M. Sehnaoui SAL (“HMS” or the “Buyer”), for the sale of shares in its subsidiary in Cyprus, Piraeus Bank Cyprus Ltd (“PBC”), which together with a combination of a concurrent primary capital raise by PBC of Euros 40,000,000 to be fully-subscribed by the Buyer and a group of investors to be procured by HMS (the “Transaction”), will result in Piraeus’ shareholding in PBC being reduced to 17.6%. The Transaction is subject to customary conditions, including regulatory and other approvals by the respective authorities in the European Commission, Cyprus and Greece, as well as the Hellenic Financial Stability Fund.

As a result of the Transaction the Group’s regulatory capital position is expected to improve by approximately 15 basis points, while PBC’s regulatory capital position is expected to exceed 15%.

The sale of PBC represents another key step towards the implementation of the Group’s Restructuring Plan commitments, as those agreed with the Directorate General of Competition of the European Commission, and follows the successful divestiture of the Group’s Egyptian subsidiary in 2015.

UBS Limited acted as exclusive financial advisor of Piraeus for the Transaction. Norton Rose Fulbright acted as international legal advisor of Piraeus and Antis Triantafyllides & Sons LLC as local legal advisor of Piraeus for the Transaction.