THE National Bank successfully completed the placement of a 500 million euro subordinated bond at a yield of 5.875%. The bond has a duration of 11.25 years, callable at 6.25 years.

The issuance is part of the Bank’s strategy to optimize its capital composition and increase the minimum requirements for own funds and eligible liabilities (Minimum Requirement for own funds and Eligible Liabilities, hereinafter MREL), which constitutes a supervisory obligation of all banks.

The transaction attracted the interest of investors gathering bids of over €1.8 billion from more than 140 investors exceeding by more than 3.6 times the amount of the issue.

Due to strong investment interest, the final yield was 5.875%. The final yield corresponds to a spread of approximately 315 bp. above the corresponding mid-swap which is the lowest Greek subordinated bond margin.

Over 80% of the book was allocated to foreign institutional investors. Above 70% was distributed to Asset Managers, Insurance and Pension Funds.

The success of the venture, a result of the diversified demand noted by a broader investor base compared to the recent past, is a practical confirmation of the confidence in the National Bank and in the prospects of the Greek economy which were confirmed by the recent upgrades to Investment Grade.

The Commerzbank, Goldman Sachs Bank Europe SE, IMI-Intesa Sanpaolo, JP Morgan, Morgan Stanley and Natixis acted as joint promoters of the tender book.

Allen & Overy and the law firm Karatza & Associates acted as legal advisors to NBG.