Piraeus Bank: covered bonds investment

Country:

Greece

Project number:

49408

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

20 Sep 2017

Status:

Signed

PSD disclosed:

04 Dec 2017

Project Description

The EBRD subscribed EUR 40 million to the EUR 500 million covered bond issued by Piraeus Bank S.A (Piraeus). The project signals the return of Greek banks to the international debt capital markets.

The bond matures in October 2022.

Project Objectives

The bond proceeds will be used to reduce the bank's dependence on Eurosytem's Emergency Liquidity Assistance Funding thus contributing towards the improvement of Piraeus' liquidity position.

Transition Impact

The project will allow Piraeus to i) access medium-term funding, ii) diversify funding sources by facilitating re-entry to debt capital markets, and iii) address balance sheet mismatches.

Client Information

PIRAEUS BANK SA

Piraeus is the largest bank in Greece out of the four systemic banks by total assets comprising EUR 68 billion on a consolidated basis as of September 2017. PB has a market share of around 30% in terms of gross loans and 29% in terms of deposits domestically, benefiting from the largest banking network in Greece.

EBRD Finance Summary

EUR 200,000,000.00

EUR 200 million envelope for EBRD's investments in covered bonds issued under Piraeus' Global Covered Bond Programme, whereby outstanding balance of investments would not exceed EUR 100 million at any point in time. The investment in the five-year benchmark covered bond issued by Piraeus in October 2017 was made in the amount of EUR 40 million.

Total Project Cost

EUR 1,000,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014): Piraeus is required to comply with the EBRD's Performance Requirements 2, 4 and 9, adopt and implement EBRD's Environmental and Social ("E&S") Procedures for Financial Institutions and submit Annual E&S reports to the EBRD.

Technical Cooperation

None.

Company Contact Information

Investor Relations

investor_relations@piraeusbank.gr

+30 210 333 5026

http://www.piraeusbankgroup.com/

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

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Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.