Alpha Bank further strengthened its position in international markets, successfully completing the issuance of €500 million Tier II subordinated bonds, confirming its strategic direction and financial progress. The Bank capitalized on favorable market conditions, raising capital on favorable terms, reflecting investor confidence and Group stability. The bonds have an 11-year maturity with an option for early redemption at 6 years, and the issuance is part of the strategy to strengthen capital adequacy and maintain high supervisory ratios, in accordance with the Bank’s Strategic Plan.
Alpha Bank: successful pricing of €500M Tier II bonds with 4.308% coupon – five-fold oversubscription in order book
The credit spread of the issuance was set at 193 basis points, the lowest recorded level for Tier II bonds of a Greek bank with the longest maturity. Additionally, it moves below the credit spreads of previous issuances the Bank has made, including senior bonds. The issuance result confirms the Bank’s consistently strong position, its operational readiness to capitalize on positive market dynamics, as well as its commitment and ability to continue uninterrupted implementation of its Strategic Plan and achievement of long-term objectives.
Capitalizing on the particularly positive market perception regarding the Bank’s profile, the issuance attracted strong investor demand, with more than 150 investors participating and offers exceeding €2.5 billion. The transaction attracted intense interest from a large number of international investors (75% of the order book), with demand coming mainly from France (12%) and the United Kingdom (26%). The allocation was covered by over 89% from long-term investors such as fund managers, banks and insurance organizations. Alpha Bank Group Deputy CEO Lazaros Papagaryfallou noted: “The successful completion of the Tier II bond issuance constitutes another tangible confirmation of the international investment community’s confidence in Alpha Bank and its long-term prospects.
Successful Tier II refinancing with strong investor interest and significantly reduced cost
This transaction represents an extremely successful refinancing of the existing Tier II issuance at approximately one-third of the previous cost, made possible through flawless execution and exceptional transaction positioning. At the same time, it underlines Alpha Bank’s enhanced credit position and its ability to attract a broader investor profile. The significant progress we have made in implementing our Strategic Plan is reflected both in the remarkable performance of our stock — which records the best performance among European banks since the beginning of the year — and in the steady strengthening of our operational efficiency. A decisive foundation of this dynamic is our strategic partnership with UniCredit, which strengthens our institutional credibility, expands our development capabilities and creates a strong reference point for the future. We proceed with consistency, confidence and institutional commitment to implementing our vision for an even stronger Alpha Bank.” Barclays, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe SE, Nomura, UniCredit acted as joint bookrunners. Koutalidis Law Firm and A&O Shearman acted as legal advisors to the issuer.
