€5bn to be raised by Marfin for new investments

€5bn to be raised by Marfin for new investmentsWith the aim to raise new investments for shares on the Athens Stock Exchange, Marfin, a Greek investment firm is planning to raise €5bn ($7bn), a step that will risk uncertain markets. A similar step was taken by the company last year when it has raised and rapidly invested a same amount of money.

The funds are being raised by the company through a capital increase, at €6 per share, while in just yesterday close; the company’s share price was trading at €5 per share. At the end of June, the company’s book value of assets was €6 per share, and it is being learnt that the firm is raising funds at this price to reflect this.

However, it is quite uncommon that during the present state of the market, funds are being raised without even a shareholder discount. Currently, the economic market conditions are quite uncertain.

Most of the €5.2bn it raised last summer has been deployed by the firm, with now 80% invested.

With the primary aim to invest in the financial sector in Greece and southeastern and eastern Europe, the group will use the placement of 834 million further shares.

There is about 20% stake of Dubai Financial Group, part of Dubai Holding, which is owned by the ruler of Dubai Sheikh Mohammed bin Rashid al Maktoum in Marfin.