BUSINESS

EIB to invest in Piraeus Bank covered bond to help fund small businesses

TAGS: Banking

The European Investment Bank (EIB) will invest 350 million euros in a covered bond that Piraeus Bank will issue next month as part of efforts to increase lending to small businesses in Greece, its president Werner Hoyer said in Athens on Friday.

The deal marks the first time that international financial organizations invest in covered bonds issued by Greek banks since the start of the debt crisis in 2010.

Piraeus Bank, Greece’s largest lender by assets, will issue a five-year covered bond to raise 500 million euros ($589.8 million). [Reuters]

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