Greece’s major banks are proving remarkably resilient in international capital markets, shrugging off the uncertainty sparked by renewed conflict in the Middle East and pressing ahead with a steady stream of bond issuances that have been met with robust investor demand.
Analysts say the sector has earned a reputation for durability among institutional investors, a credibility that was still largely unthinkable just a few years ago, when Greek banks were synonymous with systemic risk. That reputation now rests on solid capital buffers, improved liquidity positions, and successive credit rating upgrades that have unlocked broad access to interbank and capital markets. The banks also benefit from exposure to economies growing faster than the eurozone average, which has helped keep profitability at multi-year highs.
The Bank of Greece, the country’s central bank, underscored that assessment in its latest Financial Stability Report, noting that the sector’s “strong fundamentals act as a counterweight to heightened uncertainty and external risks.”
A Fast Start to 2026
Before geopolitical tensions flared again in late February, Greece’s four systemic lenders — Eurobank, National Bank of Greece, Alpha Bank, and Piraeus Bank — had already moved aggressively to tap debt markets.
Eurobank kicked off the year in late January, raising €400 million through Tier 2 subordinated bonds — a category of debt that sits below senior bonds in the repayment hierarchy and is designed to absorb losses, making it a key tool for banks in meeting regulatory capital requirements. The notes carry a fixed-to-reset coupon of 4.125%, mature in April 2037, and are callable from January 2032. Demand reached €3.8 billion from investors, representing an oversubscription ratio of 9.5 times.
National Bank of Greece followed swiftly, issuing a green senior preferred bond — bonds labeled green are earmarked to finance environmentally sustainable projects — raising €600 million at a coupon of 3.125%. The notes mature in 2031 with a call option in 2030. The deal attracted orders from more than 150 investors totaling €3.5 billion, a coverage ratio of over 5.8 times.
Alpha Bank then entered the market in early February, pricing a €750 million senior preferred bond with a seven-year maturity and a six-year call option at a coupon of 3.50%. The transaction drew international bids exceeding €3.5 billion.
National Bank of Greece capped the pre-war sprint with its debut Additional Tier 1 (AT1) bond — a perpetual, high-risk instrument that counts toward a bank’s core capital — raising €500 million at a fixed coupon of 5.80%, callable after 5.5 years. The deal attracted €5.5 billion in orders from more than 300 institutional investors, an oversubscription of 11 times.
In total, the four greek banks raised approximately €2.3 billion during the first two months of the year.
A Pause, Then a Quick Return
Market activity briefly stalled following U.S. and Israeli strikes on Iran, with greek banks pulling back from new issuances for several weeks as investors reassessed risk. But the hiatus proved short-lived.
Eurobank was the first to return, completing in mid-April a €400 million private placement of senior preferred bonds — a structure that sidesteps the traditional public book-building process in favor of a direct placement handled by a third-party bank. In this case, Morgan Stanley managed the transaction on Eurobank’s behalf, a format chosen specifically to reduce execution risk in a still-uncertain environment. The notes mature in July 2029, carry a 3.50% coupon, and include a call option one year prior to maturity. Asset managers took 70% of the allocation, with banks and private banking clients absorbing 18%. Foreign investors accounted for 95% of total demand.
Alpha Bank followed days later with a €600 million green senior preferred bond — its second ESG-labeled issuance in as many months. The deal generated more than €1.5 billion in orders, nearly three times the initial target, compressing the final yield below early price guidance. The bond carries a 3.75% coupon and a yield of 3.844%, equivalent to 95 basis points above the mid-swap rate, the standard benchmark used in European bond pricing. The six-year notes include a five-year call option. More than 100 institutional investors participated, with 80% of the paper going to foreign buyers.
Source: ot.gr
