Piraeus Bank officially announced the successful issue of a 500-million-euro Tier 2 bond with institutional investors at a coupon of 5.50 percent on Thursday.
The bond, which has a maturity of 10 years and an embedded issuer call option after 5 years, will be listed on the Luxembourg Stock Exchange.
The issuance follows a two-day marketing period which received significant investor interest with a final order book in excess of 4 billion euros from more than 350 investors.
The bond issue marks Piraeus Bank’s second issuance of a Tier 2 bond on the international debt capital markets, following the bank’s inaugural placement in June of 2019.
“Our 500-million-euro Tier 2 bond issuance marks another important step in the implementation of Piraeus Bank’s strategy,” said Christos Megalou, the longtime CEO of Piraeus Bank.
“We are very pleased with the strong investor demand received for our bond offering, another clear indication of confidence in the prospects of Piraeus Bank, the Greek banking sector and the Greek economy as a whole,” he added.
The issuance is in line with Piraeus Bank’s strategy, as communicated to the market on February 3, 2020 and it will enhance the Bank’s total capital ratio by approximately 110bps.
Barclays, BNP Paribas, Credit Suisse and Nomura acted as joint bookrunners of the issue; Goldman Sachs International and UBS Investment Bank acted both as joint global coordinators and joint bookrunners for the issuance.