Alpha Bank saw strong investor demand for its first-ever green senior preferred bond, marking its return to the international capital markets following the restoration of its investment grade rating.

The bank successfully priced the €500 million green bond with a coupon of 3.125 per cent and a final yield of 3.202 per cent, after receiving orders exceeding €3 billion through an international book-building process.

The transaction, completed with extraordinary success, was more than six times oversubscribed, underscoring the depth of investor confidence in Alpha Bank’s renewed financial standing and strategic direction.

The bond has a maturity of six years with an option for early redemption after five years, reflecting the bank’s flexibility in its funding strategy.

The overwhelming demand enabled Alpha Bank to reduce the credit spread by 28 basis points from initial guidance, achieving final pricing at 92 basis points above the mid-swap rate.

This represents the lowest spread ever achieved by a Greek bank for a comparable senior preferred bond issuance, highlighting the bank’s strengthened credit profile.

The previous comparable transaction in February 2024 had been priced at a spread of 243 basis points, making the latest result not only competitive but a clear indication of Alpha Bank’s improved position among European peers.

The issuance attracted participation from more than 140 international investors, including leading asset managers accounting for 74 per cent of the orders and global banking institutions representing 23 per cent.

Moreover, 84 per cent of the allocation went to foreign investors, reaffirming Alpha Bank’s enduring ability to access international markets with confidence and credibility.

Investor interest was exceptionally strong, with demand surpassing €1.5 billion within the first hour of the book opening.

Many individual orders exceeded €50 million, indicating robust participation from top-tier institutional investors and a growing global appetite for exposure to Greek financial assets.

According to an announcement, “the renewed trust of international markets in the bank’s stability, resilience, and growth outlook,” adding that this confidence was further supported by the bank’s strategic partnership with UniCredit.

“The proceeds from the issuance will be used to finance green projects and investments, reinforcing the bank’s commitment to sustainability and its role in supporting energy efficiency, renewable energy, and environmental impact reduction,” the bank mentioned.

What is more, Alpha Bank stated that the decision to issue its first post-investment grade bond as a green bond “underscores its alignment with ESG principles and its ambition to play a leading role in financing Greece’s green transition“.

The bank described the transaction as a strategic milestone that enhances its funding flexibility and further validates its credit standing among global investors.

“This successful pricing of our €500 million green bond represents a strategic milestone for Alpha Bank,” said Chief of Global Markets and Group Treasurer Katerina Marmara.

“It strengthens our financial flexibility in supporting green and sustainable investments and confirms the trust of international markets in our credit profile,” she said.

Marmara added that “the strong oversubscription, participation of leading institutional investors, and final pricing at a historically low spread for a Greek bank bond reflect the positive assessment of our strategy and Alpha Bank’s steady growth path.”

The joint bookrunners for the transaction were BNP Paribas, Crédit Agricole, HSBC, J.P. Morgan, Morgan Stanley, and UniCredit, all of which coordinated the issuance process.

Alpha Bank emphasised that this first green bond in its history is “more than a symbolic achievement”.

“It marks a tangible step in integrating sustainability into its business model and a reaffirmation of Greece’s banking sector as a credible participant in Europe’s capital markets,” the bank said.

The bank further stated that the success of this issuance “demonstrates that Greece’s return to investment grade is not merely a formal recognition but a substantive confirmation of the financial system’s progress and credibility“.