Alpha Bank on Wednesday announced the successful completion of an Additional Tier 1 bond issue, raising 400 million euros from the market, following a series of successful bond issuance in the last three years worth 2.8 billion euros.
The bond issue sets the preconditions to improving the bank’s capital structure in line with the standards of leading European banks and comes two days after Fitch raised the bank’s credit rating to B+. Investor demand for the issue was strong, totaling 1.8 billion euros and the issue was 5.7 times oversubscribed.
More than 190 investors participated in the auction. The interest rate of the issue was set at 11.875%, lower than market estimates.