The process of issuing Alpha Bank’s new senior preferred bond has begun, with the initial interest rate set at 8%, while the goal is to raise 300 million euros.
BNP Paribas, Deutsche Bank, Goldman Sachs and Morgan Stanley as joint bookrunners are “running” the issue of the new bond, which has a duration of 4.5 years with the possibility of recall at 3.5 years, and is expected to receive a Ba3 rating from Moody’s and B+ from S&P, while it will be listed on the Luxembourg market.
Alpha’s issue is made in parallel with the bank’s offer to repurchase the €400 million bond that expires on February 14, 2024 and has a call date of February 2023, with a 3% coupon.
Alpha Bank during the process is expected to allocate New Bonds on a priority basis to Bond holders who validly submit their Bonds for redemption or bindingly confirm to the Proposer or to any of the Dealer Manager their intention to submit to redeem the Bonds under the Offer.
The Proposal aims to refinance the Bonds through the issuance of New Bonds and is part of the management of Alpha Bank’s Minimum Required Eligible Liabilities (MREL) obligations.
Alpha Bank, BNP Paribas, Deutsche Bank Aktiengesellschaft, Goldman Sachs Bank Europe SE and Morgan Stanley Europe SE are acting as Managers of the Offer and BNP Paribas, Deutsche Bank Aktiengesellschaft, Goldman Sachs Bank Europe SE and Morgan Stanley Europe SE have been appointed as Joint Bookrunners and Alpha Bank as Co-Manager of the issuance of the New Bonds.