PRESS RELEASE – 17th of January 2023
Summary Terms
Format: State Obligation (in dematerialised book entry form), RegS Cat 1, 144A eligible, CACs
Size: EUR 3.5 billion
Pricing Date: 17 January 2023
Settlement: 24 January 2023 (T+5)
Maturity: 15 June 2033
Coupon: 4.250%, Fixed, Annual, ACT/ACT, short first coupon
Re-offer Spread: €MS+165 bps / DBR 2.3% 02/2033 (102.035%) +220.5bps
Re-offer Yield: 4.279%
Re-offer Price: 99.782%
Listing: Athens, Regulated Market
Denominations: EUR €1,000 x €1,000
ISIN: GR0124039737
Lead Managers: Barclays, BofA Securities (B&D/DM), Commerzbank, Goldman Sachs Bank Europe SE, J.P. Morgan and Société Générale
Transaction Highlights
- On Tuesday, 17th of January 2023, The Hellenic Republic, rated Ba3 / BB+ / BB / BBH (Moody's stb. / S&P stb. / Fitch pos. / DBRS stb.), priced a EUR 3.5 billion long 10-year Government Bond (GGB), due 15th of June 2033.
- The new benchmark carries a coupon of 4.250%, with a re-offer yield of 4.279%. The Joint-Lead Managers (JLMs) of the transaction were Barclays, BofA Securities, Commerzbank, Goldman Sachs Bank Europe SE, J.P. Morgan and Société Générale.
- This transaction is the first syndicated EUR benchmark issued by the Hellenic Republic in 2023 and part of the announced €7bn medium and long-term debt issuance for the year.
- The trade benefited from strong demand, with more than 230 accounts involved and a 6.2x oversubscription ratio in the orderbook, which allowed the issuer to tighten the spread 10 bps from Guidance.
Execution Summary
- The Hellenic Republic announced its intention to issue its new long 10-year GGB benchmark on Monday, 16th of January at 11h50 CET, with a 15th of June 2033 maturity.
- The initial market reaction to the announcement was positive and the issuer and JLMs decided to release Guidance of €MS+175 bps area on Tuesday, 17th of January at 9h30 CET. At the same time, the orderbook was formally opened.
- The deal was well received by the market and by 11h40 CET the orderbook was above €17.5bn (including €675mln of JLMs interest). At this time, JLMs revised the guidance to €MS+170 bps area (+/- 5bp WPIR).
- With the orderbook above €20.5bn (including €675mln of JLMs interest), at 12h25 CET the final spread was set at €MS+165bp. At 14h30 CET, the size of the transaction was announced at €3.5bn with the ordebook closing above €21.9bn (including €675mln of JLMs interest).
- At 17h15 CET, the new 10-year GGB was priced with a re-offer yield of 4.279%, offering a coupon of 4.250% and a re-offer cash price of 99.782%
- The transaction benefited from a granular and well diversified investor base, with 78% of the transaction allocated to international investors, mainly located in the UK, France and Iberia.
- The transaction was well supported by Fund Managers (47%) and the Banks community (27%), followed by Hedge Funds (11%).
Distribution Statistics
Breakdown by Geography Breakdown by Investor Type
