Best bank – National Bank of Greece
Best debt house – CSFB
Best equity house – Citigroup
Best M&A house – JPMorgan
Best local partner – Deloitte & Touche
National Bank of Greece, the country’s oldest bank, is still its dominant financial institution. Despite a difficult year, it managed a return on equity of 8.7% for 2002 and has a decent tier 1 ratio of 7.5%. Since its planned merger with Alpha Bank fell apart in January 2002, NBG has switched its focus towards organic growth in the Balkans. It has also been restructuring and over the past year has cut staff by 6%. It has arranged important loans for several Greek corporates this year, including Hellenic Petroleum and Cosmote.
In the late 1980s CSFB was the first investment bank to set up operations in Greece. Today it boasts an impressive franchise, particularly in debt capital markets. This year it was bookrunner on the largest ever lower tier 2 transaction in Greece for BBB rated National Bank of Greece. Then, in December, it brought Alpha Bank to market with the first ever tier 1 issue out of Greece. This transaction involved significant legal, tax, regulatory and rating agency issues. CSFB also helped the Hellenic Republic succeed in its first Swiss-franc denominated bond, a Sfr500 million ($383 million) deal in April.
Citigroup is clearly committed to making Greece attractive to international equity investors. It is the largest trader by volume in Greek stocks, according to Autex, with a market share of more than 35% and its primary market business is over twice as large by volume as those of its nearest rivals, Deutsche Bank and Morgan Stanley. Key deals have included a e501 million transaction for OPAP, e350 million of which was allocated internationally. Also significant, and admired among Citi’s rivals, was the e272 million placement for Cosmote Mobile, which came after a long pause in Greek issuance. This was priced at a 1.7% discount to the market price and 90% was placed with non-Greek investors.
JPMorgan has advised on several Greek M&A transactions recently, including the most sizeable – the acquisition of Papastratos by Philip Morris which is still under way. Papastratos is the largest tobacco company in Greece and family owned. JPMorgan also advised Commercial Bank of Greece on selling a stake in Bank of Attica to the Postal Savings Bank. In September, the bank signalled its continuing commitment to the market by hiring Harry Adamopoulos from CSFB to be head of Greek investment banking.
Deloitte & Touche has been the partner of choice for smaller Greek companies looking for corporate finance advice this year. It is working with the Greek government to turn the ailing Olympic Airways into a more attractive prospect for potential buyers and this year sold its catering subsidiary to restaurant company Everest. It also advised Post Bank on acquiring a stake in Bank of Attica from the Commercial Bank of Greece and Hellenic Sugar Industry on buying a 79% stake in a Serbian sugar factory.
