The National Bank of Greece successfully completed a €600 million green senior preferred bond issue in international markets, marking a major funding milestone for the bank.

According to an announcement by the bank, the bond carries an interest rate of 3.125 per cent and a yield of 3.23 per cent, reflecting strong pricing conditions.

The issuance matures in 2031 with a call option in 2030, providing flexibility within the bank’s broader funding strategy.

This transaction represents the fourth green bond issuance by the bank, further strengthening its sustainable finance profile.

Following the transaction, green bonds now account for 67 per cent of the bank’s total senior preferred bonds outstanding, underlining the growing weight of sustainable instruments in its funding mix.

According to the announcement, proceeds from the issuance will be used to finance a portfolio of green projects in line with the bank’s Sustainable Bond Framework.

The funding is expected to reinforce the bank’s leading position in financing renewable energy projects, supporting the transition to cleaner energy sources.

The transaction forms part of the bank’s strategy to meet the Minimum Requirement for Own Funds and Eligible Liabilities, which is a regulatory obligation for European banks.

The issuance attracted strong investor demand of €3.5 billion, with interest coming from more than 150 institutional investors.

This level of demand corresponds to an oversubscription of more than 5.8 times the amount issued.

Final pricing reflected a spread of 75 basis points over the relevant mid-swap rate, the lowest margin ever achieved in a senior preferred bond issuance by a Greek bank.

More than 85 per cent of the bonds were allocated to international institutional investors, highlighting the global reach of the transaction.

Investors based in the United Kingdom received 27 per cent of the allocation, while France accounted for 20 per cent and Germany for 8 per cent.

A total of 68 per cent of the issuance was allocated to asset managers, insurance companies, pension funds and supranational organisations, demonstrating broad-based institutional participation.

Banks and private banking clients accounted for 18 per cent of the allocation, while hedge funds and other investors received 14 per cent.

According to the bank, “the strong participation of international investors underscores the bank’s solid fundamentals and the improved outlook of the Greek economy“.

BofA Securities Europe SA, Deutsche Bank, Goldman Sachs Bank Europe SE, Natixis, Morgan Stanley SE and Santander acted as joint bookrunners for the issuance.

Freshfields LLP and Karatzas and Associates acted as legal advisers to the bank, supporting the execution of the transaction.

In related news, National Bank of Greece (Cyprus_, the bank’s subsidiary on the island, recently participated in the 13th Banking Payments and Fintech Forum and Expo, engaging in discussions on the future of banking from 2026 onwards.

At the event, the bank highlighted a commitment to innovation, regulatory balance, trust-based relationships, and its strategic role as the group’s international hub for Cypriot businesses.