Bernitsas Law acted as Greek law counsel to Piraeus Bank in connection with the issuance and offering of its first investment grade €650m Green Senior Preferred Bond due July 2029 (Bond) to international and domestic institutional investors, as well as their listing on the Euro MTF Market of the Luxembourg Stock Exchange. The Bond has been assigned an investment grade rating of 'Baa3' from Moody’s. The proceeds of the Bond issuance will be directed in financing eligible green assets originated by Piraeus Bank that will contribute to achieving carbon neutrality by 2050 and are expected to provide positive environmental impact.
The transaction was successfully priced on 10 July and settled on 17 July 2024. The transaction attracted significant interest from more than 200 institutional investors, with 70% placed among asset managers, insurance companies and pension funds, 21% to banks and private banks, 7% to hedge funds and 2% to other investors. More than 85% of the issue was allocated to international institutional investors, while more than 75% was allocated to ESG focused accounts. The total order book of the transaction exceeded €4.1bn, being more than 8.2 times oversubscribed compared to an initial issuance target of €500m, the biggest book on record for Greek banks’ senior debt issuance in the recent years. The success of the transaction is a clear testament of investor confidence in Piraeus Bank, following the recent upgrade to investment grade from Moody’s Ratings, with the Bond being the first offering from a Greek bank having an investment grade rating.
Partner Maria Nefeli Bernitsa and Associate Marinos Shiapanis advised on this transaction.
