Athens, Greece. National Bank of Greece completed a €600 million green senior preferred bond issue in international markets, according to a bank announcement. The issuance drew €3.5 billion in investor demand from more than 150 institutional investors.
Bond terms and structure
According to the announcement, the bond carries an interest rate of 3.125 per cent and a yield of 3.23 per cent. The issuance matures in 2031 and includes a call option in 2030.
Green issuance and use of proceeds
The transaction is the bank’s fourth green bond issuance, further strengthening its sustainable finance profile. Following the transaction, green bonds account for 67 per cent of the bank’s total senior preferred bonds outstanding. The bank said proceeds will be used to finance a portfolio of green projects in line with its Sustainable Bond Framework.
Strategy and demand
The bank said the funding is expected to reinforce its position in financing renewable energy projects. The transaction forms part of the bank’s strategy to meet the Minimum Requirement for Own Funds and Eligible Liabilities, a regulatory obligation for European banks. The bank said the issuance was oversubscribed by more than 5.8 times.
What do you think the strong demand for this issuance indicates about investor appetite for green bank debt?
