Piraeus Bank SA, a subsidiary of Piraeus Financial Holdings SA, successfully priced a €500 million Green Senior Preferred Bond on 28 May 2025. The bond, with a maturity of 3.5 years and an issuer call option after 2.5 years, attracted investor interest, garnering orders exceeding €3.7 billion – more than 7.4 times the issuance size.
his successful bond issuance follows Piraeus Bank’s strong financial performance in the first quarter of 2025. The bank reported a net profit of €284 million, a 22% increase year-over-year.
The final coupon was set at 3.00%, with a re-offer price of 99.68%, resulting in a yield of 3.140%. This issuance achieved the tightest credit spread for a similar Greek bank transaction in recent years at 115 basis points, below the initial guidance of 145 basis points.
The bond attracted over 200 institutional investors, with 64% allocated to asset managers, 27% to banks and private banks, 5% to hedge funds, and 4% to other investors. Notably, more than 80% of the issuance was placed with international investors, predominantly from the UK & Ireland (29%), France (18%), and the DACH region (14%). Approximately 75% of the bond was allocated to ESG-focused accounts.
Recent green bonds have seen oversubscription across Europe. In April 2025, the European Investment Bank (EIB) issued a €3 billion Climate Awareness Bond aligned with the European Green Bond Standard (EuGBS). This bond attracted orders exceeding €40 billion, making it more than 13 times oversubscribed and the largest EuGBS-aligned bond to date.
Pireaus’ bond is expected to receive a “Baa2” investment grade rating from Moody’s Ratings and will be listed on the Luxembourg Stock Exchange’s Euro MTF market, with settlement scheduled for 3 June 2025. Proceeds from the bond will finance or refinance eligible green assets under Piraeus Bank’s green bond framework, updated in May 2024. This marks the bank’s third green bond issuance, bringing its total green funding to €1.65 billion, with approximately €0.8 billion already allocated to green projects.
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