Piraeus Bank has successfully priced a new €500 million Senior Preferred Bond. Consequently, the issuance carries an annual fixed coupon of 4.00%. Furthermore, the Senior Preferred Bond attracted strong interest from institutional investors worldwide. Indeed, this Senior Preferred Bond marks a major milestone for the Athens-based lender.
The Bank confirmed the transaction in Athens, Greece. Additionally, the bond carries a six-year maturity. However, Piraeus retains an issuer call option after five years. Settlement will occur on 3 September 2026. Meanwhile, the notes will list on the Luxembourg Stock Exchange’s Euro MTF market. Moreover, Moody’s Ratings is expected to assign an investment-grade “Baa2” rating.
Therefore, net proceeds will support general corporate and financing purposes. Additionally, funds will help maintain ongoing compliance with MREL requirements.
Strong Investor Demand Drives Record Order Book
More than 130 institutional investors participated in the offering. Specifically, asset managers took 55% of the allocation. Meanwhile, banks and private banks secured 25%. Insurers and pension funds received 16%, while other investors took the remaining 4%. Notably, international investors received 85% of the total issue. Demand came primarily from France, accounting for 24%. Similarly, the DACH region contributed 17%, while Benelux added 13%.
Overall, the transaction represents Piraeus Bank’s first issuance since achieving full investment-grade status. Additionally, it marks the Bank’s first bond issue of 2026. The total order book peaked above €2.5 billion. Thus, demand exceeded five times the €500 million target. As a result, Piraeus tightened pricing significantly from initial guidance of 115-120bps to 90bps. Consequently, this spread became the tightest-ever achieved by Piraeus on a Senior Preferred issuance. Furthermore, it represents the tightest-ever Senior Preferred spread out of Greece for this tenor bucket.
Bond Pricing and Advisory Team
Ultimately, the final coupon settled at 4.00%. Additionally, the reoffer price was set at 99.902. Several leading banks acted as joint bookrunners. These included BNP Paribas, Goldman Sachs Bank Europe SE, and J.P. Morgan. Natixis, Santander, and UBS Investment Bank also participated as bookrunners. Meanwhile, Ambrosia Capital and Piraeus Bank served as co-leads. Furthermore, A&O Shearman and Bernitsas Law Firm provided legal advisory services to Piraeus.
This successful Senior Preferred Bond issuance highlights growing investor confidence in Piraeus Bank. Consequently, it strengthens the Bank’s funding profile heading into the rest of 2026.
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News Source: Businesswire.com
