The move is part of the national bank's €1 billion share capital increase drive, while it is understood that the new ordinary shares will be offered as subscription to Existing Shareholders.

In an announcement released by the bank, the placing has been filed with the Department of the Registrar of Companies and Official Receiver. The filing follows the approval by the District Court of Nicosia for a reduction in the nominal ordinary share value.

The statement read:

“With the filing and registration of the court order with the Department of the Registrar of Companies and Official Receiver today, all conditions precedent to the closing of the Placing and Open Offer have been satisfied and, accordingly, the Bank is pleased to announce that the Closing Date for the Placing and the Open Offer will be 18 September 2014 and that it is arranging for the despatch of Placing Confirmations and Open Offer Confirmations,”

The bank also noted that, after closing, the retail offer to existing shareholders will be at a subscription price of €0.24 per unit.