NBG issues 500-million-euro Subordinated Tier II bonds

The National Bank of Greece has successfully completed the placement of a reduced-security bond in the market amounting to 500 million euros with a return of 5.875%, the lender announced. 

The bond has a duration of 11.25 years with a callable period of 6.25 years.

The issuance is part of NBG's strategy to optimize its capital structure and increase the minimum requirements for own funds and eligible liabilities (MREL) which is a supervisory obligation for all banks.

As announced, the transaction attracted the interest of investors, collecting bids worth more than 1.8 billion euros from over 140 investors, more than 3.6 times the amount of the issue. Due to strong investment interest, the final return was set at 5.875%. [AMNA]