The National Bank of Greece recently announced that it had received offers worth over €2.4 billion from more than 200 investors for its senior bond issue. This is the largest book ever recorded by a Greek bank in recent years. The final yield of the bond issue came in at 4.5%, which was lower than the initial guidance of 5.0%, owing to strong investor interest.
This corresponds to a spread of approximately 181 basis points above the corresponding mid-swap. The book was largely allocated to foreign institutional investors, with 85% of the total allocation going to them. Over 70% of the book was allocated to Asset Managers, Insurance and Pension Funds.
National Bank of Greece noted that the success of the bond issue is a practical confirmation of the trust that investors have in the bank and the prospects of the Greek economy. This success is attributed to the diversified demand noted by a broader investment base compared to the recent past.
