Hellenic Bank prices issue of €100m Senior Preferred Notes

Hellenic Bank Public Company Limited announced that it has successfully priced an issue of €100m Senior Preferred Notes under the Bank’s €1.5b Euro Medium Term Note (EMTN) Programme, subject to satisfaction of customary conditions precedent.

The Notes will be issued at par with a fixed coupon of 4% per annum, payable annually in arrear, the bank said. Τhe fixed coupon will reset on 17 September 2025. The maturity date of the Notes will be 17 September 2026, and the Notes will, subject to satisfaction of certain conditions and compliance with applicable prudential rules, be callable by the Bank at par on 17 September 2025 (2NC1). Settlement will take place on 17 September 2024 and the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.

According to Hellenic Bank, the issue attracted substantial interest from the investor community, with the total orderbook exceeding €370m; 3.7 times oversubscribed. The strong investor demand allowed the tightening of the Notes’ initial price indication of 4.5% by 50 basis points.

The Notes are expected to be fully eligible for the Bank’s minimum requirement for own funds and eligible liabilities (MREL) up to 17 September 2025, the call date, and are in line with the Bank’s funding strategy.

The Notes are expected to be rated ‘Ba2’ by Moody’s Ratings and at ‘BBB-’ by Fitch Ratings.

The bank's Interim Chief Executive Officer, Antonis Rouvas, stated: "We are pleased with the success of this transaction, which is a clear testament of the market confidence in the Bank’s creditworthiness, reflected by the significant investor interest and the competitive pricing. The transaction follows the recent rating upgrades of the Bank, which were the result of a number of significant milestones achieved by the Bank and further improvement of its business model and financial performance. The substantial tightening of the credit spread compared to our inaugural Senior Preferred issue in July 2022 demonstrates the Bank’s strengthened credit profile. I recognise and thank all my colleagues at the Bank and the Board of Directors for their hard work and commitment during this journey."

J.P. Morgan acted as Sole Lead Manager on the transaction.

For further information, contact Investor Relations at ir@hellenicbank.com.

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