The EBRD invested EUR 50 million in a benchmark EUR 500 million senior preferred green bond issuance by the National Bank of Greece ("NBG"). The transaction marks the first green bond as well the first senior preferred bond issued by a Greek bank. The bonds have a 6-year maturity with a call option on the fifth year and are listed on the Luxembourg Stock Exchange.
The Project supports the resilience and regulatory compliance of a systemic bank in Greece and contributes to the capital market development by supporting the issuance of new instruments by greek banks. In addition, the project supports the green targets by supporting the first issuance of a green bond by a Greek bank.
ETI score: 67
The expected transition impact stems from its contribution to the Resilient and Green transition qualities:
- Resilient: The Project supports the resilience of the financial sector and markets by: (i) supporting NBG to gradually build its MREL funding base in an environment adversely impacted by Covid-19, (ii) helping NBG to diversify funding sources, and (iii) supporting the issuance of senior preferred and green bodns as new capital market instruments for Greek banks.
- Green: The Project supports the first issuance of a Green Bond (aligned with the International Capital Market Association's Green Bond Principles) by a Greek bank with a significant demonstration effect for other potential issuers; promoting further the green agenda in Greece.
NATIONAL BANK OF GREECE
NBG is the largest bank in Greece with consolidated assets of EUR 74.2 billion and 20% market share in lending at end-June 2020. It is listed on the Athens Stock Exchange with market capitalisation of EUR 1.1 billion. The Hellenic Financial Stability Fund is the largest sharehoder with a 40% stake, with no other shareholder owning more than 5%. NBG is rated B (S&P), Caa1 (Moody's) and CCC+ (Fitch).
EBRD Finance Summary
Total Project Cost
The Project's additionality stems from supporting NBG to successfully issue a debute senior preferred green bond in an environment destabilised by the Covid-19 crisis, supporting NBG to widen the investor base by sending a positive signal to other stable investors, and encouraging NBG's green agenda by supporting the Green Bond issuances.
Environmental and Social Summary
Categorised FI (ESP 2019). National Bank of Greece is an existing client and will be required to comply with the Performance Requirements 2, 4 and 9 and applicable EBRD Environmental and Social Risk Management Procedures, the EBRD's Environmental and Social Eligibility Criteria for wind and solar projects (or any other renewable energy projects, if applicable), and submit annual environmental and social reports to the EBRD.
Technical Cooperation and Grant Financing
Company Contact Information
+30 210 48 48 484
National Bank of Greece S.A. Eolou 86, 10559 Athens, Greece
PSD last updated
16 Oct 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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