The EBRD subscribed EUR 40 million to the EUR 500 million covered bond issued by Alpha Bank A.E. ("Alpha") under its EUR 8 billion Direct Issuance Covered Bond Programme I. The covered bond has a soft bullet structure with a maturity of five years and marks Alpha's first public covered bond issuance.
The bond proceeds will be used to reduce Alpha's dependence on Eurosystem's Emergency Liquidity Assistance funding; thus, contributing towards the normalisation of its liquidity position.
ETI score: 65
The project will enable Alpha to access medium-term funding, diversify its funding sources and reduce its dependence on Eurosystem funding in order to address the balance sheet missmatches. In addition, supports the Alpha's efforts to create a benchmark pricing curve for its debt instruments.
ALPHA BANK SA COVERED BONDS
Alpha is one of the four systemic banks in Greece with its shares listed in the Athens Stock Exhange. It offers a wide range of high-quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance products, investment banking, brokerage and real estate management.
EBRD Finance Summary
EUR 100 million envelope for EBRD's investments in covered bonds issued under EUR 8 billion Direct Issuance Covered Bond Programme I. The investment in the five-year benchmark covered bond issued by Alpha in January 2018 was made in the amount of EUR 40 million.
Total Project Cost
EUR 500 million under its EUR 8 billion Direct Issuance Covered Bond Programme I.
Environmental and Social Summary
Categorised FI (2014 ESP): Under the existing exposure, Alpha is in compliance with the EBRD's Performance Requirements 2, 4, and 9 and will be required to continue to comply with the EBRD's Performance Requirements 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures Mortgage Lending and submit Annual Environmental and Social Reports to the EBRD.
Technical Cooperation and Grant Financing
Company Contact Information
+30 210 326 4118
+30 210 326 8309
40 Stadiou Str., 102 52 Athens, Greece
The project supported the stabilisation of the Greek banking sector and the broadening of banks' financing options by re-introducing covered bonds as a valuable funding tool. The project has successfully contributed to the diversification of Alpha's funding sources, supporting its return to the debt capital markets. The investment in Alpha's longer-tenor covered bonds has also contributed to the development of a benchmark pricing curve for Greek banks' funding instruments.
PSD last updated
15 Feb 2022
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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