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ΕΚΔΟΣΗ 5-ΕΤΟΥΣ ΟΕΔ

PRESS RELEASE – 5th of May 2021

The Hellenic Republic
(Moody's Ba3 Stable, S&P BB Positive, Fitch BB Stable, DBRS BB Low Stable)

EUR 3 billion GGB 0% due 12 February 2026

Summary Terms

 

Format:                                   Reg S Category 1, 144a eligible, CACs

Size:                                        EUR 3 billion

Pricing Date:                           5th May 2021

Settlement:                            12th May 2021

Maturity:                                12th February 2026

Coupon:                                   0.000%, Fixed, Annual ACT/ACT

Re-offer Spread:                     MS+47bps / DBR+77.7bps (ref spot 103.033%)

Re-offer Yield:                        0.172%

Re-offer Price:                        99.186%

Listing:                                     Athens, Regulated Market

Denominations:                      EUR €1,000 x €1,000

Lead Managers:                       Barclays, BofA Securities, Citi, Commerzbank, Morgan Stanley and Société Générale CIB

 

Transaction Highlights

  • On Wednesday, 5th of May 2021, the Hellenic Republic (rated Ba3 Stable by Moody’s, BB Positive by S&P, BB Stable by Fitch and BB Low Stable by DBRS), priced a EUR 3 billion 0.000% short 5-year Government Bond (GGB), due 12th of February 2026.
  • The new benchmark carries a coupon of 0.000%, with a re-offer yield of 0.172%. The joint-bookrunners managing the transaction were Barclays, BofA Securities, Citi, Commerzbank, Morgan Stanley and Société Générale CIB.
  • The transaction marks another key step in the normalization of Greek Government Bonds witnessed in recent years, and follows the EUR 2.5 billion 30-year priced in March and the EUR 3.5 billion 10-year priced in January this year. The Republic’s year-to-date borrowing in the capital markets via syndication has reached EUR 9 billion.
  • Notably, the trade represents the Hellenic Republic’s first benchmark ever to achieve a 0% coupon, as well as the lowest yield ever achieved by the Sovereign for a syndicated transaction.
  • The trade is another testament to Greece’s upward credit rating trajectory, and comes after the Credit Rating update from Standard & Poors (“S&P”) in April 2021, when the Sovereign was upgraded to “BB” with positive outlook.
  • The transaction benefited from strong demand, with over 140 accounts participating and a 6.7x oversubscribed book, which allowed the issuer to tighten 8bps compared to initial guidance.
  • This new GGB short 5-year benchmark provides the market with a new reference point in Greece’s curve with a current coupon of 0%, compared to the 1.875% EUR 2.5 billion Jul-26 Benchmark.

Execution Summary

  • Supported by a constructive market backdrop, also aided by the increased pace of ECB PEPP buying announced at its March meeting, the Public Debt Management Agency of the Hellenic Republic decided to take advantage of a clear execution window after the Orthodox Easter.
  • The issuer announced the mandate for a new 5-year EUR benchmark on Tuesday, 4th of May, with a February 2026 maturity (short 5-year).
  • On the back of essential, positive feedback collected during the day on Tuesday, the Hellenic Republic released IPTs of MS+55a at around 9:40AM CET on Wednesday, 5th May 2021.
  • Reaction from investors was very strong from the outset; at 11:30AM CET, with IoIs in excess of EUR 14 billion, Guidance was published at MS+50bps +/-3bps “WPIR”. At the same time, books were formally opened.
  • Interest continued to grow as momentum gathered pace, with demand reaching more than EUR 20 billion (including EUR 400m Joint-Lead Manager’s interest) by 12:40 CET. At that point, the issuer decided to set the spread at MS+47bps (8bps tighter than initial guidance), also signalling books would be closing at 1:00pm CET.
  • At 3:25pm CET, the new GGB February-2026 was launched with a final size of EUR 3 billion. Final orderbook was in excess of EUR 20 billion (including EUR 400m Joint-Lead Manager’s interest), the third largest ever by the Hellenic Republic since it return to the capital markets in 2017.
  • At 17.09 CET, the new GGB February-2026 was priced with a final size of EUR 3 billion and yield of 0.172%, offering a coupon of 0.000% and a reoffer cash price of 99.186%
  • The transaction benefited from a granular (145 accounts), and much diversified investor base, with 85% allocated internationally. The transaction was also well supported by the Asset Managers (43%) and Banks community (35%), as well as Insurance companies and Pension Funds (5%).

 

Final Distribution

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