The National Bank announced today that it intends to raise 750 million euros from issuing a five-year fixed-rate bond, in an effort to increase its cash flow and liquidity. The coordinators for the issue will be the Bank of America Merrill Lynch, Citigroup, Goldman Sachs , HSBC and Morgan Stanley.
According to a Reuters report, the bond will have an interest rate less than the 4.95% rate of the recent bond issued by the Greek state, with some estimating it will be near 4%. Traditionally, bank bonds have a higher rate than state bonds, dues to the increased investment risk.
However, the fact the Greece avoided a full collapse as recently as in 2012, in conjunction with the recent financial developments, has convinced investors to accept a lower rate, believing that Greece is on a path to recovery.
Meanwhile, the bank’s deputy managing consultant Petros Christodoulou has initiated a series of contacts with international investors in London and other European capitals.
