PRESS RELEASE – 8th October 2019
The Hellenic Republic
(Moody’s B1 Stable, S&P B+ Positive, Fitch BB- Stable, DBRS BB(low) Stable)
EUR 1.5 billion GGB 3.875% due 12th March 2029
Summary Terms
Format: Reg S Category 1, 144a eligible, CACs
Size: EUR 1.5 billion
Pricing Date: 8th October 2019
Settlement: 15th October 2019
Maturity: 12th March 2029
Coupon: 3.875%, Annual ACT/ACT
Re-offer Spread: DBR 0% 08/29 + 209.7bps
Re-offer Yield: 1.50%
Re-offer Price: 120.686%
Listing: Athens Stock Exchange
Denominations: €1,000 x €1,000
Lead Managers: BNP Paribas, Citi, Goldman Sachs, HSBC, J.P. Morgan
Transaction Highlights
- On Tuesday 8th October the Hellenic Republic, rated B1 Moody’s/ B+ S&P/ BB- Fitch/ BB (low) DBRS (stb/ pos/ stb/ stb), priced a €1.5 billion tap of their outstanding March 2029 Government Bond (GGB). The benchmark carries a coupon of 3.875% and reoffer yield of 1.50%, equating to a reoffer price of 120.686%. Joint bookrunners on the transaction were BNP Paribas, Citi, Goldman Sachs Intl, HSBC and J.P. Morgan.
- This transaction is the Hellenic Republic’s fourth syndicated transaction in 2019, following the successful 5-year issuance in January, 10-year issuance in March and 7-year issuance in July.
- When initially issued, the GGB 3.875% March 2029 bond was the longest maturity syndicated by the Hellenic Republic since their return to capital markets, and their first 10-year syndicated benchmark since 2010.
- In line with the Hellenic Republic’s strategy, this issue reduces the reliance of the Republic on the T-bill market while increasing the liquidity in the 10-year benchmark and cementing the normalisation of the Hellenic Republic’s access to markets.
Execution Summary
- Following the successful 5-year issuance in January, 10-year issuance in March and 7-year issuance in July, alongside supportive primary market conditions, the Hellenic Republic announced their intention to tap their Mar-29 GGB on Monday, 7th October at 13.45 UKT.
- The initial market reaction to the announcement was positive, and guidance of 1.55% area was released on Tuesday, 8th October at 08.45 UKT.
- Strong interest in the transaction was clear from the outset and by 11:15 UKT books were in excess of €5.4 billion (including €402mm joint-lead manager interest). The tap was launched at this time with a yield of 1.50% and size of €1.5 billion.
- Books were closed at 13.00 UKT in excess of € 7.6 billion (including €714mm joint-lead manager interest).
- A high number of accounts participated in the transaction (250+). As in the Republic’s previous benchmarks, the lion’s share was taken by Fund Managers and Banks/ Private Banks, with Insurance/ Pension, CB/OI and Hedge Funds taking up the remainder. Total real-money allocations were 87.2%.
- By geography, the transaction was supported throughout Europe, by accounts in the UK, Nordics, France, Germany/ Austria and Greece in particular.
Final Distribution (TBU)
By Investor Country By Investor Profile
