The transaction attracted strong investment interest from more than 145 institutional investors
THE Piraeus Bank announced that it has successfully completed the pricing of a new Tier 2 subordinated bond of €500 million with a coupon of 7.250%, attracting the interest of a significant number of institutional investors.
The bond has a duration of 10.25 years, with a right of withdrawal between the 5th and 5.25 years. The settlement date is January 17, 2024. The bond will be traded on the Luxembourg Stock Exchange – Euro MTF Market and will receive a credit rating of B1 / B from the credit rating agencies Moody’s and Fitch respectively.
In conjunction with the new issue, Piraeus announced a cash repurchase proposal for the holders of the Tier 2 subordinated bond yielding 9.750% and callable in June 2024. The funds raised through the new issue will be used by Piraeus to finance the bond repurchase proposal with cash and to further strengthen its capital position.
As announced, the transaction attracted strong investment interest from more than 145 institutional investors. In terms of allocation, 62% was allocated to fund managers, 22% to banks and 16% to other investors.
The total order book of the transaction exceeded 1.8 billion euros, exceeding by more than 3.7 times the issue target. Based on strong investor interest, the final yield stood at 7.375%, against an initial target of 7.750%, with more than 75% of the issue going to foreign institutional investors.
