PRESS RELEASE – 27th of April 2022
The Hellenic Republic
(Moody's Ba3 Stable, S&P BB+ Stable, Fitch BB Positive, DBRS BBH Stable)
EUR 1.5 billion GGB 2.000% 22 April 2027 reopening
Summary Terms
Format: Reg S Category 1, 144a eligible, CACs
Issue Size: EUR 1.500 billion
Previous Outstanding Size: EUR 2.424 billion
New Outstanding Size: EUR 3.924 billion
Pricing Date: 27th April 2022
Settlement: 5th May 2022
Maturity: 22nd April 2027
Coupon: 2.000%, Fixed, Annual ACT/ACT
Re-offer Spread: MS+110bps / OBL 04/27 +184.8bps (ref spot 97.47%)
Re-offer Yield: 2.366%
Re-offer Price: 98.304%
Listing: Athens, Regulated Market
Denominations: EUR €1,000 x €1,000
ISIN: GR0118020685
Lead Managers: BNP Paribas, BofA Securities, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and J.P. Morgan
Transaction Highlights
- On Wednesday, 27th of April 2022, the Hellenic Republic (rated Ba3 Stable by Moody’s, BB+ Stable by S&P, BB Positive by Fitch and BBH Stable by DBRS), successfully reopened the EUR 2.000% April 2027 (5-year) Government Bond (GGB) for EUR 1.5 billion, at a re-offer yield of 2.366%.
- The joint-bookrunners managing the transaction were BNP Paribas, BofA Securities, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE and J.P. Morgan.
- The transaction brings liquidity to this segment of the curve and follows the EUR 3 billion 10-year benchmark priced in January this year. The Republic’s year-to-date borrowing in the capital markets via syndication has reached EUR 4.5 billion.
- The trade is another testament to Greece’s upward credit rating trajectory, and comes after the Credit Rating update from Standard & Poors (“S&P”) on 22nd April 2022, when the Sovereign was upgraded to “BB+” with stable outlook.
- The transaction benefited from strong demand, with over 110 accounts participating and a 3.2x oversubscribed book, which allowed the issuer to tighten 5bps compared to initial guidance.
- This tap of the GGB Apr-27 (5-year) provides liquidity to the market in the 5-year segment, bringing the size of the line to EUR 3.924 billion. The bond was initially issued in April 2020 at MS+220bps.
Execution Summary
- For its first appearance in the EUR primary market since the end of the PEPP in March 2022, the Public Debt Management Agency (PDMA) of the Hellenic Republic decided to take advantage of a clear execution window after the Orthodox Easter break and the S&P rating upgrade.
- The issuer announced the mandate for a reopening of the existing GGB 2.000% 22 April 2027 bond (5-year) on Tuesday, 26th of April.
- On the back of constructive feedback collected on Tuesday afternoon, the Hellenic Republic officially opened books on Wednesday at 9:20AM CET, with initial guidance released at MS+115bps area.
- On the back of an orderbook in excess of EUR 5.8 billion (including EUR 325 million JLM interest) within 2 hours, the Hellenic Republic was able to set the spread 5bps inside initial guidance at MS+110bps, also signalling books would be closing at 12:00AM CET.
- Slightly ahead of 1:25PM CET, the GGB April-2027 reopening was launched with a final size set at EUR 1.5 billion. Final orderbook closed in excess of EUR 4.8 billion (including EUR 325 million JLM interest).
- The GGB April-2027 tap priced at 16.22 CET, offering a yield of 2.366%, and a reoffer cash price of 98.304%.
- The transaction benefited from a granular orderbook (110 accounts), and much diversified investor base, with 68.1% allocated internationally. The transaction was also well supported by the Fund Managers (47.6%) and Banks (29.4%).
Final Distribution
By Investor Country By Investor Profile
