In 2007, the government proceeded with a further step towards reducing its interest in the banking sector through the sale of 20% of Postal Savings Bank via an accelerated bookbuild offering. In addition, 10.7% in Hellenic Telecommunications Organization was similarly sold.

 

Both OTE and PSB placements are considered significant successes, characterized by strong demand by domestic retail investors and domestic and foreign institutions resulting in notable oversubscription. The featuring element signifying the success of OTE and PSB transactions was that their pricing involved no discount and 0.56% premium, respectively, compared to the previous day's closing.

 

It is important to mention that the PSB accelerated bookbuild offering was the first one in the Greek market priced at a premium.

 

The success was also highlighted in the press. International Financing Review published an article under the title of “Greeks master the art of Privatisations” acclaiming the execution of the transaction.

 

The Greek government's €510m selldown of Postal Savings Bank (PSB) last week highlighted the different ways in which governments approach share sales, and the varying degrees of success that their strategies meet with.

 

The relaxed, but intelligent approach of the Greek government is in stark contrast to the aggressive approach adopted by the French government on its recent €2.65bn selldown of France Telecom.

 

The positive result also suggests that it took a more sensible approach than the bizarre strategy of the Swedish government in its US$2.6bn selldown of TelliaSonera, which saw the finance ministry announce the banks a week before the deal was launched.”

 

International Financing Review, 14 July 2007

 

Total revenues from the implementation of the 2007 privatisation program were €1,719m exceeding the national budget target of €1,700m.