The Hellenic Republic
EUR 3 billion GGB 1.750% due 18 June 2032
PRESS RELEASE – 19th of January 2022
Summary Terms
Format: State Obligation (in dematerialised book entry form), RegS Cat 1, 144A eligible, CACs
Size: EUR 3 billion
Pricing Date: 19 January 2022
Settlement: 26 January 2022 (T+5)
Maturity: 18 June 2032
Coupon: 1.750%, Fixed, Annual, ACT/ACT, short first coupon
Re-offer Spread: MS+140bps / DBR+184.2bps (ref spot 100.06%)
Re-offer Yield: 1.836%
Re-offer Price: 99.197%
Listing: Athens, Regulated Market
Denominations: EUR €1,000 x €1,000
ISIN: GR0124038721
Lead Managers: Barclays (B&D/DM) / Commerzbank / Eurobank / Morgan Stanley / Nomura / Société Générale
Transaction Highlights
- On Wednesday, 19th of January 2022, the Hellenic Republic, rated Ba3 Stable by Moody’s, BB Positive by S&P, BB positive by Fitch and BB positive by DBRS, priced a EUR 3 billion 10-year Government Bond (GGB), due 18th of June 2032
- The new benchmark carries a coupon of 1.750%, with a re-offer yield of 1.836%. The Joint-bookrunners managing the transaction were Barclays, Commerzbank, Eurobank, Morgan Stanley, Nomura and Société Générale.
- This transaction is the first syndicated EUR benchmark issued this year and it is part of the announced €12bn Financing Plan of the Hellenic Republic in 2022. In addition, it marks another key step in the normalization of Greek Government Bonds witnessed in recent years
- The trade benefited from strong demand, with over 175 accounts involved and a 5x oversubscription book, which allowed the Issuer to tighten 5bps from Guidance
Execution Summary
- The Hellenic Republic announced its intention to issue its new 10-year GGB benchmark on Tuesday, 18th of January at 13h00 CET with a June 2032 maturity
- The initial market reaction to the announcement was positive and, despite the softer market environment, Guidance of €MS+145 bps area was released to the market on Wednesday, 19th of January at 9h20 CET. At the same time, books were formally opened
- Reaction from investors was good: by 11h00 CET the orderbook was in excess of €11bn (including €875mln of Joint-Lead Managers’ interest). At this time, Leads fixed the spread at €MS+140 bps
- Books were closed at 12h00 CET in excess of €15bn (including €900mln Joint-Lead Managers’ interest). At 14h50 CET the size of the transaction was set at €3bn
- At 16h40 CET, the new 10-year GGB was priced with a re-offer yield of 1.836%, offering a coupon of 1.750% and a re-offer cash price of 99.197%
- The transaction benefited from a granular (179 accounts) and much diversified investor base, with 84.5% allocated to international investors, mainly located in UK and Ireland, France and Italy.
- The transaction was also well supported by Fund Managers (48.7%) and Banks community (29.8%), as well as Hedge Funds (12.8%)
Distribution Statistics
Breakdown by Geography Breakdown by Investor Type
