Piraeus bond issue to be first public debt sale from a Greek bank since 2009

Piraeus Bank’s planned bond issue will be the first public debt sale from a Greek lender since 2009 when the first cracks started to appear in the nation’s finances, according to UBS AG.

Piraeus, which has a capital shortfall of 425 million euros, is issuing debt before the Greek government returns to capital markets after its bailout, UBS said in a note to clients on Friday.

“Many high-yield investors have the cash but lack the supply,” said Armin Peter, head of European debt syndicate at UBS in London.

“As long as it has a coupon it will work.”