Alpha Bank: Senior preferred bond issue through private placement – Raised 300 million euros

Alpha Bank proceeded with the issue of senior preferred Bond of 300 million euros, two-year with non-call for the first year and 3% issue interest rate, through a private placement.

The issue, which was arranged by Morgan Stanley, is part of the Bank’s funding plans and comes to strengthen the Group’s funds beyond and above the intermediate supervisory targets for 2021 for the Minimum Equity and Eligible Liabilities (Interim Target on Minimum). Required Eligible Liabilities – MREL).

The issue is part of the Bank’s tactics to take advantage of the appropriate conditions in international markets, as it did last September with the issuance of a senior preferred bond of 500 million euros. In this case, after the successful issue in September, there was intense interest from international investors of a certain profile (large insurance companies and foreign insurance funds, as well as mutual funds investing in fixed income securities) to be placed in an issue by Alpha Bank with a shorter term. horizon. The Bank’s management took the opportunity and proceeded with the private placement of selected investors, taking into account the demand and the expected market conditions for the next year, as for the beginning of 2022 a large supply of international government and corporate bonds is expected.

The current version enables Alpha Bank to position itself in a timely manner and to carefully select the times of its scheduled issues for 2022.

It is recalled that the entire banking system of the country has planned a series of issues in the coming years amounting to about 5 billion Euros in order to cover by the end of 2025 the Minimum Required Eligible Liabilities requested by the European Central Bank.