Alpha Bank became the second Greek bank to launch an exchange offer on its outstanding subordinated and senior bonds in recent weeks as the countries' lenders scramble to plug capital hole.
The Greek lender follows in Piraeus's footsteps, it having launched a similar offer on October 15
It is looking to exchange 27 subordinated and senior bonds originally amounting to 2.796bn, of which 1.086bn remains outstanding, for so-called non-transferable receipts.
Investors will have the option of exchanging their holdings into either cash or shares. For those opting for cash, Alpha is offering to pay between 50.00 and 5.00, depending on the type of security.
The results of the Greek bank stress tests are expected to be released this weekend and the country's institutions are under pressure to find money from private investors to fill any capital shortfalls
"The exchange offers are being made to strengthen the offeror's capital base, which has been impacted by the impaired macro-economic conditions recently experienced in the Hellenic Republic that are affecting all Greek financial institutions," the bank said in a statement.
Piraeus also targeted both senior and subordinated debt holders for capital ahead of a possible equity capital raise.
Citigroup and JP Morgan are dealer managers for the exchange offer, which expires on November 16.