Alpha bond is more than five times oversubscribed

Alpha Bank raised 400 million euros on Wednesday through the issue of an Additional Tier 1 bond with a coupon of 11.875%, a rate lower than initial market estimates.

The issuance drew high interest from the investment community and, according to the bank’s statement, it is “an important milestone that confirms the bank’s strong access to the capital markets, the quick reflexes, but also the determination of the bank’s management team to take advantage of the favorable market conditions. The issue creates the conditions for optimizing the capital structure of Alpha Bank, according to the standards of leading European banks,” said Alpha.

Making the most of the positive momentum in the markets and the bank’s recent upgrade by Fitch to B+, demand for the bond significantly exceeded – by 5.7 times – the initial target of €300 million, with offers approaching €1.8 billion from more than 190 investors. Following the high investment interest, the bank decided to increase the issue, eventually raising €400 million.

The transaction gathered exclusively international investment interest, with coverage primarily coming from the United Kingdom (40%), the European Union and Switzerland (35%).