Alpha Bank is set to offer the lowest new issue yield from a Greek bank since the country’s institutions returned to the capital markets on Thursday, helping further cement the recovery story of one of the eurozone’s most troubled jurisdictions.
The Caa1/CCC/B- rated bank is marketing the three-year bond at 3.75 percent area via Citigroup, HSBC, JP Morgan and Mediobanca.
This level is much lower than where Piraeus raised three-year funds back in March and capitalizes on the rally seen across all peripheral credits in recent weeks.
Piraeus which is rated Caa1/CCC/CCC priced a 500m euro three-year with a 5.125 percent yield. That transaction was yielding at 3.3 percent on Thursday, according to a bookrunner.
Alpha Bank’s deal will also price tighter than where National Bank of Greece priced a 750m euro five-year in April. That deal came with a 4.375 percent coupon and was quoted at 4.2 percent.
The deal will be priced later Thursday, subject to market conditions. [Reuters]