The National Bank of Greece (NBG) has issued a €750 million senior preferred bond in the international capital markets. The bond offers a fixed coupon of 2.75% and yields 2.9%. It will mature in 2029 and is callable in 2028. This marks NBG’s third Green Bond, increasing the share of Green Bonds to over 50% of its total senior bonds outstanding.
The funds from this issuance will support a portfolio of Green Projects as per NBG’s Sustainable Bond Framework, emphasizing the bank’s dedication to environmental sustainability and renewable energy financing.
This transaction is part of NBG’s strategy to meet its Minimum Required Eligible Liabilities (MREL), a regulatory obligation for European banks. Investor interest was high, with demand reaching approximately €5.5 billion from over 240 institutional investors, leading to an oversubscription exceeding seven times. This represents the largest order book recorded for a Greek bank’s senior preferred issuance.
The final pricing indicates a spread of 78 basis points over the mid-swap rate, marking the tightest spread achieved for Greek senior preferred bonds. About 80% of the issuance went to international institutional investors, with allocations including fund managers, insurance companies, pension funds, private banks, bank treasuries, official institutions, and hedge funds.
This transaction reinforces NBG’s position as Greece’s leading financial institution. The positive response from global investors underscores the bank’s strong fundamentals and Greece’s improving economic outlook.
BofA Securities SA, Goldman Sachs Bank Europe SE, Morgan Stanley, Deutsche Bank, HSBC, IMI – Intesa Sanpaolo and Société Générale were joint bookrunners for this issuance. Freshfields Bruckhaus Deringer LLP and Karatzas & Associates served as legal advisers to NBG.
