Rating: Baa3/BB+
Amount: Eu200m tier one capital
Maturity: perpetual
Issue price: 100.00
Coupon: three month Euribor plus 125bp until 27/10/14; three month Euribor plus 225bp thereafter
Call option: at par from 27/10/14
Launched: Wednesday October 20
Joint books: ABN Amro, Alpha Bank, Morgan Stanley
Bookrunner's comment:
ABN Amro ? Piraeus is one of Greece's top five banks and on the back of its record first half results, with net profit up by 45%, Piraeus Bank was an extremely well received credit. It had positive credit momentum and a diligent approach to the issuance process.
Having issued highly successful senior and lower tier two transactions, we were delighted to have been awarded this prestigious tier one mandate.
There was excess demand for the two previous deals, so this was a keenly anticipated tier one transaction that has met with an unsurprisingly positive response.
Given the successful meetings that the borrower has held throughout the year, it was felt that no further physical roadshow was required.
After the announcement of guidance of 125bp over three month Euribor, the book build gained immediate traction, with strong support from the investor community.
Although the sub-investment grade rating on one side decreased the potential buyer base, pan-European demand throughout the process gave a nice international flavour with notable interest from Switzerland, Iberia and the UK.
Even with a weaker tone in the secondary market, there was no price sensitivity in the book, which was testament to the quality of the Piraeus credit.
With a healthy level of oversubscription, we priced a Eu200m deal at 125bp over. That was the middle of the initial price guidance range and, given the quality of the book and the excess demand, the transaction has outperformed on the balance. It is now (Thursday) quoted around 2bp tighter.
The two international lead managers worked extremely well with Alpha Bank to achieve a highly successful transaction, continuing Piraeus' superlative issuance track record.
Market appraisal:
?...the perp non-call 10 floater for Piraeus offers a lot more spread than anything else out there and seemed to go well.
I have not seen it trade, so it may have all gone back into Greece.?