Alpha Bank successfully placed a Euro 500 million, Tier 2 bond with 10-year maturity callable after 5years at a yield of 4.25%, listed on the Luxembourg Stock Exchange.
Following two days of marketing, the transaction received exceptionally strong demand amounting to Euro 5.1 billion from more than 340 investor names. The transaction attracted broad geographical attention, with 92% placed with international investors, led by Europe (43%) and UK (39%) and also with notable interest out of Asia (10%). Long term investors led the distribution, with fund managers and insurance companies accounting for more than 60% of the allocation.
The transaction is an integral part of Alpha Bank’s strategy, as presented to the investor community in November 2019. The issuance optimises the Bank’s capital structure and diversifies its capital sources while further strengthens the Total Capital Ratio by circa 105bps.
Citi, Goldman Sachs International, HSBC, J.P. Morgan and NatWest Markets acted as joint
bookrunners and Citi was the structuring advisor on the transaction.
Mr. Vassilios Psaltis, CEO of Alpha Bank, commented:
“Our inaugural Tier II capital transaction is a key milestone in the implementation of our recently communicated strategic plan. The strong demand by a well-diversified international investor base led to this successful outcome, which represents a strong testament to the future of Alpha Bank and to the prospects of the Greek