The National Bank of Greece (NBG) has attracted bids exceeding 3.5 billion euros for its new green bond, according to the bank’s book of offers. This latest issuance involves a senior preferred bond, aiming to tap into the market for sustainable finance.
The funds raised through this bond will be allocated to loans focused on climate change mitigation projects. Initial estimates suggest a yield of approximately 3.8%.
The bank’s current credit rating stands at “Baa2” with a positive outlook from Moody’s, and “BB+” with a positive outlook from both S&P and Fitch.
This marks NBG’s second attempt of green bond issuance, following its initial successful issuance in 2020. The current auction is for a six-year green bond, with a callable option, allowing for early payment, after five years, and is expected to secure a “Baa2” rating from Moody’s.
Leading global financial institutions, including Nomura, BNP Paribas, Bank of America, Citi, Goldman Sachs, and Morgan Stanley, are underwriting the issuance. The proceeds are earmarked for financing environmentally sustainable projects.
The bank’s strong performance in Q3, particularly in net interest income, has positioned it to exceed its profitability and capital efficiency targets for 2024. This positive trajectory reflects better-than-expected financial outcomes, reinforcing NBG’s commitment to sustainable finance and green initiatives.
