National Bank of Greece is eager to make the most of the favorable climate among foreign investors toward the country in the last couple of months, and especially after the election result, proceeding immediately with the issue of a Tier II bond to boost its capital.
US investment banks Goldman Sachs and Morgan Stanley have undertaken the issue and are implementing a two-day roadshow that opened on Tuesday with a series of conference calls with investors. It will be completed on Wednesday with meetings between the NBG management and investors in London. Bookrunners also include BofA Merrill Lynch, Credit Suisse and JP Morgan.
The new Tier II bonds are expected to receive a CCC rating by Standard & Poor’s and Fitch, and a Caa2 rating by Moody’s. It will be a 10-year paper with a non-call period of five years (10NC5).
NBG announced that the issue will take place in the near future, depending on market conditions, but sources say the book is expected to open during the week, possibly on Thursday, although strong pressure on Greek stocks and bonds have created some concerns.
Although the amount of the issue has not been made public, it is estimated National will aim to collect some 400 million euros, similar to the amount Piraeus Bank drew on June 19.