National Bank of Greece (NBG) successfully completed the placement of GBP 200 million senior preferred bonds in the international capital markets.
The deal is the first offering in this currency from a Greek-based issuer since 2009 with 70% of the bond allocated to foreign investors.
The bond matures in four and a half years and is callable in three and a half years. The coupon of the bond is 8.75%. The final cost for the Bank, after a cross-currency swap, is 6.97%, or 421 bps over 6-month Euribor.
The issuance is part of the Bank’s strategy to increase its Minimum Required Eligible Liabilities (MREL), which is a supervisory requirement for all banks.
The Goldman Sachs Group Inc acted as joint bookrunner of the issue, while Allen & Overy and Karatzas & Partners acted as legal advisers to NBG.