ATEbank is seeking to raise about €1.26 billion in a rights offer to increase its capital, Reuters reports. The Greek bank’s right offer will raise its total capital adequacy ratio to 12.54%.

The state-owned lender will use €675 million of the proceeds to buy back preferred government shares, received in 2009 as part of a state support package for banks. The right offer is scheduled to be completed in July 2011.

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