Announcements

ISSUANCE OF 5-YEAR BOND

THESE MATERIALS ARE NOT AN OFFER FOR SALE OF THE SECURITIES IN THE UNITED STATES. SECURITIES MAY NOT BE SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. THE HELLENIC REPUBLIC DOES NOT INTEND TO REGISTER ANY PORTION OF THE SECURITIES OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF SECURITIES IN THE UNITED STATES.

 

           

 

 

 

 

PRESS RELEASE – 1st of February 2019

The Hellenic Republic

(Moody's B3 Positive, S&P B+ Positive, Fitch BB- Stable)

EUR 2.5 billion GGB 3.450% due 2 April 2024

 

Summary Terms

 

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

Size:                                        EUR 2.5 billion

Pricing Date:                            29th January 2019

Settlement:                              5th February 2019

Maturity:                                   2nd April 2024

Coupon:                                   3.450%, Fixed, Annual ACT/ACT

Re-offer Spread:                      OBL #179 0% 04/24 +389.4bps

Re-offer Yield:                          3.600%

Re-offer Price:                          99.314%

Listing:                                     Athens Stock Exchange

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

Lead Managers:                       Bank of America Merrill Lynch, Goldman Sachs, HSBC, J.P. Morgan,

                                               Morgan Stanley and Société Générale CIB

 

Transaction Highlights

  • On Tuesday 29th of January the Hellenic Republic rated B3 Positive by Moody’s, B+ Positive by S&P and BB- Stable by Fitch, priced a EUR 2.5 billion 3.450% long 5-year Government Bond (GGB), due 2nd of April 2024 at 3.600%. The joint-bookrunners managing the transaction were Bank of America Merrill Lynch, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley and Société Générale CIB.
  • The transaction marks a key milestone in the Hellenic Republic’s presence in the international capital markets as it represents the 1st benchmark trade after Greece’s exit from its third and final fiscal programme.
  • The new transaction benefitted from the positive backdrop for Greek government bonds since the beginning of the year. The GGB Feb-2025 launched in 2018 having already performed 25bp year to date. Moreover, it extended its performance during the execution phase of the new 5 year transaction, rallying a further 8bp since the announcement of the new 5-year benchmark on Monday.
  • The transaction benefited from strong demand with the participation of more than 290 accounts, and a final orderbook north of EUR 10 billion, representing the highest orderbook reached by the Hellenic Republic since its return to the international capital markets in 2017. This positive outcome allowed Greece to price the new bond at the lower range of guidance, 3.60%, after starting from IPTs of 3.750% to 3.875%.
  • This new GGB long 5-year benchmark provides the market with a new reference point in Greece’s curve, filling the gap between the outstanding GGB 3.500% 30-Jan-2023 and GGB 3.375% 15-Feb-2025.

 

Execution Summary

  • Capitalizing on supportive market conditions in the EUR SSA primary market, the PDMA decided to announce to the market its intention to launch a new GGB long 5-year benchmark, with an April 2024 maturity, on Monday 28th of January at 12.25 Athens Time (AT).
  • On the back of the positive investor feedback received after the initial market announcement, the PDMA together with the joint-bookrunners decided to release IPTs of 3.750 - 3.875% on Tuesday 29th of April at 10:35 AT.
  • Strong support was witnessed from the outset with Indications of Interest (IOIs) above EUR 8.5 billion (including EUR 505 million of joint-bookrunners interest), at which point books officially opened at 12:55 AT with a price guidance of 3.60-3.70%.
  • The positive momentum continued, and demand reached more than €10bn (including €540m of joint-bookrunners interest), the highest orderbook ever achieved by Greece since its return to the international capital markets in 2017. At 15.30 AT, the new GGB April-2024 was launched with final size of EUR 2.5 billion and yield of 3.600%, offering a coupon of 3.450%.
  • The transaction benefited from a granular (290 accounts), high quality (89% of real money accounts) and diversified investor base (almost 90% allocated internationally), providing a strong footprint for the Hellenic Republic come back to markets normality.

 

Final Distribution

 

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