Piraeus Bank raised €500 million from its foray into the markets on Tuesday via the issuance of its third green bond, with investors showing overwhelming interest.
Demand reached €3.75 billion—more than 7.5 times the initial offering—highlighting strong investor confidence.
As a result of this significant oversubscription, the bond’s yield was set at 115 basis points over mid-swaps, down from the 145 basis points initially indicated.
International investors saw the bank’s return to investment-grade status as a positive factor that boosted its credibility.
The 3.5-year bond, which includes a call option after 2.5 years, will be used to fund green investments and further bolster the bank’s Minimum Requirement for Own Funds and Eligible Liabilities (MREL), which currently stands at 28.2%—well above the regulatory requirement of 27.4%.
Meanwhile, Printec Cash Network S.A., a member of the Printec Group, has been announced as the buyer of the majority stake in a related transaction.
As previously reported by OT, Greek banks are preparing to deploy new bond issuances as a strategic move to safeguard their core profitability in anticipation of pressure from declining interest rates.
