National Bank of Greece issues €500m Additional Tier 1 Notes with a coupon of 5.8%

The National Bank of Greece (NBG) has successfully completed the issuance of €500 million Additional Tier 1 notes in the international capital markets, offering a fixed coupon of 5.8%. The notes, which are perpetual with a fixed rate reset, a contingent temporary write down and a call option after 5,5 years, mark NBG’s first Additional Tier 1 issuance.

The Notes are callable at par on any interest payment date falling on or after August 12th 2031 according to the terms and conditions of the Notes. Settlement will take place on February 12th 2026 and the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.

This transaction forms a key part of NBG’s strategy to optimize its capital structure. The offering attracted strong investor interest, with demand peaking at approximately €5.5 billion from over 300 institutional investors, resulting in an oversubscription of 11 times.

The final pricing reflects a spread of 331.7 basis points over the corresponding mid-swap rate, the tightest spread achieved to date for Greek Additional Tier 1 bonds and the 6th lowest reset spread across all outstanding European AT1s issued in euro. More than 90% of the issuance was placed to international institutional investors with UK based accounts being allocated 29%, French 26% and Italian 7% of the issue. In terms of investor type, approximately 81% was allocated to asset managers, insurance and pension funds, 11% to private banks and bank treasuries and 8% to hedge funds and others.

The strong reception from global investors highlights the Bank’s robust fundamentals and the improving outlook for the Greek economy.

The AT1 Νotes have been assigned a Ba3 rating from Moody’s. Concurrently, the AT1 issuance contributed to the rating upgrade of the Tier 2 Notes of the Bank from Ba1 to Baa3, rendering them the only investment grade Tier 2 Notes issued by a Greek Bank.

Barclays, BNP Paribas, BofA Securities Europe SA, Goldman Sachs Bank Europe SE, Morgan Stanley SE and Nomura acted as joint bookrunners for the issuance.

Freshfields LLP and Karatzas & Associates acted as legal advisers to NBG.