NBG Covered Bonds

Project number:

49096

Approval date:

20 Sep 2017

Status:

Signed

PSD disclosed:

31 Oct 2017

Translated version of this PSD: Greek

Project Description

The EBRD subscribed EUR 30 million to the EUR 750 million covered bond issued by National Bank of Greece S.A. (NBG). The project signals the return of Greek banks to the international debt capital markets. The bond matures in October 2020.

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 normalisation of NBG's liquidity position.

Transition Impact

The project provides NBG access to medium-term funding, diversifies its funding sources and addresses balance sheet mismatches, while it supports the bank's efforts to create a benchmark pricing curve for its debt instruments.

Client Information

NATIONAL BANK OF GREECE

NBG, one of the four Greek systemic banks, is the country's oldest lender having established in 1841. The bank has a total assets base of EUR 70 billion as of end of June 2017 and its shares are listed on the Athens Stock Exchange.

EBRD Finance Summary

EUR 100,000,000.00

EUR 100 million envelope for EBRD's investments in covered bonds issued under NBG's Covered Bond Programme II. The investment in the three-year benchmark covered bond issued by NBG in October 2017 was made in the amount of EUR 30 million.

Total Project Cost

EUR 1,500,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014): NBG 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.

Implementation Summary

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. Since the onset of the Greek financial crisis in 2009, banks had limited presence in the debt capital markets. NBG's CB issuance in October 2017 marked the first public debt issuance from a Greek bank since mid-2014 and the second Greek covered bond to be ever placed with external investors after NBG's issuance in 2009. The project has successfully contributed to the diversification of NBG's funding sources and to the capital markets development in Greece, having also formed the first point for building a reliable benchmark pricing curve for banking instruments.

Technical Cooperation

None.

Company Contact Information

Apostolos Mantzaris, Deputy Head of Funding Solutions and Structured Finance
mantzaris.ap@nbg.gr
+30 210 332 8517
https://www.nbg.gr/en
68 Akadimias Str, 106 78, Athens, Greece

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Email: projectenquiries@ebrd.com

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Text of the PIP

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