Greece's Piraeus Bank raises 500 mln euros with Tier 2 bond issue

Piraeus Bank SA

09/01/2024 15:31

ATHENS, Jan 9 (Reuters) - Piraeus Financial Holdings
 BOPr.AT , one of Greece's four-largest lenders, raised 500
million euros ($547.10 million) from a Tier 2 bond issue on
Tuesday, seeing strong demand as investor interest in the Greek
banking sector rises, a source said.
    The yield on the bond, which has a 10-year duration, was set
at 7.375%, lower than the initial pricing of 7.75%, the source,
who was involved in the deal, said.
    Bids topped 1.8 billion euros, meaning that the issued
amount was oversubscribed more than three times.
    The Greek banking sector is attracting foreign investors
after the country regained an investment-grade credit rating
last year for the first time in 13 years. It had been in the
junk category since the 2010 debt crisis. 
    "The proceeds from the new issue will be used to repay a 
2019 bond that carries a 9.75% coupon," the source told Reuters.
    Holders of a bank's Tier 2 debt rank below senior
bondholders in the event of a default but before investors in
AT1 debt, which is a semi-equity capital instrument.
    Barclays, BNP Paribas, BofA Securities, Goldman Sachs Bank
Europe SE, Nomura and UBS Investment Bank were joint
bookrunners.
    

($1 = 0.9139 euros)

 (Reporting by Lefteris Papadimas; Editing by Sharon Singleton)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))