Greece

Greece sold the first and only public sector benchmark deal of the week on Wednesday. However, issuers are preparing to return in force in euros and dollars next week, according to bankers.

Greece was the only public sector borrower to announce a new benchmark transaction on Tuesday, picking banks to lead a new five year syndicated deal.

Greek banks are making the most of exuberant conditions in the financial markets in 2021, with Eurobank spying a golden opportunity to return to the senior FIG bond market this week. The next milestone is the country’s first additional tier one and, having just breezed through an equity raise, Piraeus is a prime candidate to open the market. Frank Jackman and Sam Kerr report.

Equity investors showed they were stepping up in numbers to invest in primary growth capital raises across Europe after Elkem, the Norwegian silicone manufacturer, raised $228m-equivalent and Greek bank Piraeus completed a €1.38bn raise to help clean up its non-performing loan book.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Tuesday, March 23. The source for secondary trading levels is ICE Data Services.

Greece has struggled with the colossal challenge of rehabilitating its capital markets reputation since its debt crisis in 2009. But last week, it took a big step forward, returning to the 30 year tenor for the first time in well over a decade. Dimitrios Tsakonas, head of the Greek Public Debt Management Agency. told GlobalCapital about the journey the PDMA has undertaken.

Rating: Ba3/BB-/BB

Piraeus Bank is hoping to raise €600m of additional tier one capital as part of a set of actions aimed at strengthening its balance sheet. This week’s announcement comes a few months after the Greek lender had to convert €2bn of government-held contingent convertibles into equity.

It was a long time coming, but Greece finally completed its curve with a 30 year bond on Wednesday. This was its first in the tenor since before the global financial crisis. The bond was a success, despite a choppy backdrop.

Greece and the Flemish Community are preparing to sell syndicated bonds at the long end of the euro curve following a strong reception for France with the sale of its second green OAT on Tuesday.

Alpha Bank priced a new tier two in line with its initial marketing range on Thursday, after failing to build up much momentum through the order book.

Banco de Sabadell was met with good demand for the first euro additional tier one benchmark of the year on Tuesday, as investors welcomed a rare opportunity to pick up subordinated bank debt in the primary market. Alpha Bank could add to the supply later this week after unveiling plans for a new tier two transaction.