**Alpha Bank Successfully Prices €700 Million Bond Issue Amid High Demand**
Alpha Bank, one of Greece's leading financial institutions, announced on Monday that it has successfully priced a €700 million senior preferred bond issue, following an impressive demand of €2.9 billion from investors. This significant interest underscores the bank's solid standing in the financial market and reflects a robust appetite for investment in Greek financial instruments.
The newly issued fixed-rate reset notes are set to mature on March 28, 2031, and carry a coupon rate of 4.3888 percent. Notably, these bonds can be called by the bank after a period of three and a half years, providing Alpha Bank with flexibility in its financial management.
The final order book for the bond issue reached €2.6 billion, indicating strong investor confidence. Over 110 investors participated in the offering, with a substantial portion—95 percent—of the allocation going to fund managers, banks, and wealth management firms. The international interest was particularly notable, with foreign investors accounting for 79 percent of the total issue, highlighting the appeal of both Alpha Bank and the broader Greek economy to global investors.
This bond issuance is part of Alpha Bank's ongoing strategy to manage its funding and liability structure effectively. Alongside the bond issue, the bank has also extended a voluntary tender offer for €500 million of senior preferred notes that are set to mature in 2028. These existing notes were initially issued on September 23, 2021. The tender offer allows current holders of these notes to sell their positions back to the bank and reinvest in the newly issued bonds.
Alpha Bank has engaged international financial institutions to act as dealer managers for the tender offer and joint lead managers for the new bond issue. The new notes are targeted specifically at professional investors and eligible counterparties, rather than retail investors. The bank has clarified that no key information document or equivalent product summary has been prepared for retail distribution within the European Economic Area or the United Kingdom. Furthermore, the minimum denomination for the new notes is set at €100,000.
The bank has also emphasized that the securities are not being offered to the public in jurisdictions where such an offering would necessitate additional regulatory approval. Notably, in the United States, the new notes are not being offered or sold and have not been registered under the US Securities Act. The tender offer is similarly subject to restrictions in several jurisdictions, including the United States, Italy, the United Kingdom, Greece, France, and Belgium.
In Italy, the tender offer is being conducted as an exempted offer under financial services legislation, available to eligible investors through authorized financial intermediaries. In the United Kingdom, the offer documents are restricted to professional investors and other categories of persons to whom financial promotions may lawfully be communicated. In Greece, the offer documents are distributed exclusively to eligible counterparties and professional clients under the applicable MiFID II framework. In France, participation is limited to qualified investors, while the offer is not being made or advertised to consumers in Belgium.
Alpha Bank has stated that investors participating in the tender offer must provide representations and warranties regarding their eligibility and compliance with the relevant jurisdictional restrictions. The bank has cautioned that failure to adhere to these requirements could lead to the rejection of a tender instruction or the revocation of an accepted tender.
This bond issue marks a significant step for Alpha Bank as it continues to navigate the evolving financial landscape and strengthen its position in the market. The high level of demand for the bonds reflects not only investor confidence in the bank but also a broader optimism regarding the economic prospects of Greece.