Hellenic Bank Raises €100 Million in Oversubscribed Bond Issuance

Hellenic Bank has successfully completed a €100 million Senior Preferred bond issuance under its €1.5 billion Euro Medium-Term Note (EMTN) programme, the bank announced on Wednesday.

The issuance was highly successful, with the total order book surpassing €370 million, reflecting a 3.7-fold oversubscription.

The bond was issued at par with a fixed annual interest rate of 4 per cent, payable annually in arrears. The rate is set to reset on September 17, 2025, with the bond maturing on September 17, 2026. There is also an option to call the bond at par on September 17, 2025, contingent upon meeting specific conditions and complying with prudential supervision rules.

Settlement for the bond is expected to take place on September 17, 2024, and it will be listed on the Euro MTF market of the Luxembourg Stock Exchange. Strong investor demand enabled the bank to lower the initial indicative pricing by 50 basis points, bringing the final pricing down from 4.5 per cent to 4 per cent.

This bond issuance is expected to meet the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) criteria by the call date of September 17, 2025, aligning with the bank’s broader funding strategy. Additionally, the bond is expected to be rated ‘Ba2’ by Moody’s and ‘BBB-’ by Fitch.

“We are pleased with the success of this transaction, which is a clear demonstration of the market’s confidence in the bank’s creditworthiness, reflected in the significant investor interest and competitive pricing,” said Hellenic Bank’s interim CEO, Antonis Rouvas.

Rouvas emphasized that the bond issuance follows recent upgrades to the bank’s ratings, which were achieved thanks to several key milestones in the bank’s performance and the ongoing enhancement of its business model. He also highlighted the reduction in the credit margin compared to the bank’s first Senior Preferred bond issuance in July 2022, calling it a reflection of the bank’s "strengthened credit profile."

“I recognise and thank all my colleagues at the bank and the Board of Directors for their hard work and dedication on this journey,” Rouvas added.

J.P. Morgan served as the sole lead manager for this transaction.

By fLEXI tEAM