The “thirst” of international investors for Greek assets increases steeply after the recovery of the investment grade. A fact that is reflected in the large offers for Greek assets, which approached 120 billion euros, in 2024.

At the same time, as market players observe, a new generation of more “quality” and long-term investors is being created for Greek assets, after the recovery of investment grade. The title investment grade allows a much larger audience of investors to invest in Greek assets.

Systemic banks in the same period collected bids of almost 37 billion euros through the disinvestment process, but also through bond issues.

Banks through its divestment Ths from Piraeus and Ethniki attracted total offers of 17 billion euros, while the four systemic banks from the beginning of 2024 have collected offers of 20.8 billion euros from the bond issue.

“The privatization of 10% of National bank which has just been completed is a significant success for the Greek economy. Especially if you take into account the fact that it coincided with a period of great insecurity in the markets due to the worsening of the crisis in the Middle East.

Nevertheless, the international offer – with the participation of world-class institutional investors – was oversubscribed by 12 times and the total by 11 times. A performance that is a new record for the banking industry in the Greek market, while the share price was 42% higher than the issue that took place in November.

The Public Offer attracted considerable interest from both Greek and foreign investors, with the total demand amounting to 7.2 billion euros and the total value of the transaction reaching 0.7 billion euros.

Offers – mammoth about 11 billion euros, last March, the HFSF collected for 27% of Piraeus with the public putting 1.3 billion euros into its coffers. The offering price was set at 4 euros per share and at a premium, which was an exception for Europe, as all the corresponding pan-European placements had been made at a discount. A secondary sale of this amount of equity capital, so heavily oversubscribed by such quality investors and at such a premium, has no historical precedent.

It should be noted that at the beginning of February its initial public offering was completed Athens International Airport, with the partial disinvestment of the Greek State, which allocated 30% to investors, while the total gross revenues amounted to 784.7 million euros, with offers exceeding 8 billion euros.

Bonds

The offers for the editions so far government bondswithin 2024, together with reissues, amount to 74 billion euros.

In February 2024 the Greek State raised 4 billion euros from a new issue of a 10-year bond with a yield of 3.478%, significantly lower than that of the issue of the same maturity in January 2023. It is worth noting that this issue achieved three records at the same time: (1) It gathered the largest offer book ever ever noted for a Greek government bond, as it exceeded 35 billion euros, with the coverage ratio standing at 8.75x (compared to 6.26x in the previous corresponding issue). (2) The pricing of the bond closed with the lowest yield difference (country premium) that has been achieved in a Greek issue. (3) It is the largest 10-year bond issue since 2010.

Also, the government raised 3 billion euros from the issuance of a 30-year bond with a yield of 4.241% and a strong coverage ratio, reflecting the strong demand mainly from international investors with the total demand amounting to 33 billion.

Through bond reissues, the government raised 1.6 billion euros, with the total offers amounting to 5.9 billion euros.

The bond issues within 2024 had a reduced weighted average yield compared to those of 2023. Recent bond issues have seen a significant reduction in the Greek State’s borrowing costs, which is linked to the upgrade to the investment category, which leads to an increase in the demand for Greek securities, especially Greek government bonds, on behalf of international investors. It is also worth noting that the recent issuances of long-term and very long-term bonds, in addition to increasing the weighted average duration of the debt traded in the bond market, also carry a very positive signal, due to strong demand.

The banks

The four systemic Greek banks, since the beginning of this year, have issued bonds, issues that have gathered total offers of 20.8 billion euros.

In September, Piraeus successfully completed pricing Reduced Collateral Bond Tier 2 of 650 million, with a coupon of 5.375%, attracting strong investment interest from about 200 institutional investors, and the total order book of the transaction exceeded 2.7 billion, oversubscribed by more than 5.4 times.

Piraeus in April proceeded with the extradition High Redemption Priority Bond 500 million. The transaction attracted strong investment interest from more than 110 fund managers and orders exceeded 1.3 billion, exceeding the issuance target by more than 2.7 times.

In July, Piraeus successfully completed pricing Green High Paying Priority Bond 650 million at a yield of 4.625%, with the transaction’s total order book exceeding 4.1 billion, exceeding the initial target by more than 8.2 times, and the largest book ever recorded in a High Yield bond issue Priority from a Greek bank in recent years.

National Bank successfully completed the placement in January senior bondamounting to 600 million. The transaction attracted the interest of investors, gathering offers of over 2.4 billion. from more than 200 investors exceeding by more than 4 times the amount of the issue. Also in March, it issued a subordinated bond, amounting to 500 million. The transaction attracted offers of over 1.8 billion from more than 140 investors, exceeding by more than 3.6 times the amount of the issue.

In early 2024 Eurobank proceeded with an issue subordinated bond300 million, with the issue gathering orders from 148 different investors with the total demand reaching 1.8 billion. Eurobank then last April successfully completed a senior bond issue of 650 million with the total demand to reach over 1.4 billion

Explosive was the demand that manifested itself at the beginning of September for the edition bond AT1 (Additional Tier 1) of Alpha Bank, with offers exceeding the requested amount by more than 8.3 times and exceeding 2.5 billion euros, with the bank raising 300 million.

In June, the issue also attracted intense investment interest Tier II bond of Alpha Bank’s Euro500 million, and more than 130 investors placed with bids exceeding 1.5 billion.

Strong demand from foreign and domestic investors attracted it senior bond (senior preferred bond) of Euro 400 million of the same bank, at the beginning of last February and the total offers approached 1.3 billion.