With the aim of raising at least 300 million euros, it enters the markets today. Alfa Bankas directed by Citi (Sole Structured Adviser), Barclays, BofA Securities, Citi, JP Morgan and Nomura (Joint Bookrunners) to issue an additional Tier 1 security.

The AT1 bond is irregular and has a fixed maturity date (perpetual), matures in 5.5 years and is included in the bank’s regulatory capital. Its price is expected with interest as the related bond issued in 2021 by Piraeus Bank with an interest rate of 8.75% is currently valued at around 15.5%, bringing Alfa Bank’s AT1 bond leverage closer to 12%. .

According to the bank, “the AT1 issuance is the result of the successful implementation of the strategic plan (Project Tomorrow) and the improvement of the bank’s profitability in 2022.” As part of its plan to raise capital for the purpose of credit expansion, already in 2021, the Bank included the issuance of additional Tier 1 bonds, subject to the achievement of a core capital ratio of at least 13%. Management estimates that the possibility of issuing AT1 securities reaches 700 million euros.

With the issuance ordered yesterday and the offer book closed tomorrow, the Bank is expected to further strengthen its supervisory funds, paving the way for further support for entrepreneurship, the development of the Greek economy and the fulfillment of commitments made to its shareholders, with the prospect of paying dividends from 2023 profits. Thus, as noted in the message, “conditions are being created to optimize the capital structure of Alfa-Bank according to the standards of other European banks that have exhausted the margin for issuing additional Tier 1 and Tier 2 bonds.”

Of note, the Basel III Total Capital Tier Tier 1 Index (FL CET1) rose to 12.1% based on the latest available data for the 9th month of 2022, up 47 basis points and further strengthened. by 65 basis points expected in 2023 as a result of the planned synthetic securitization. For Tier 2 bonds, the bank fully covered its €1bn issuance margin through issuances completed in 2019 and 2020. In its statement, Alfa-Bank notes that “from 2019 to the present, international capital markets for all classes of securities (shares, senior preferred, Tier 2 and now AT1). Over the past three years, the bank’s total presence through bond issuance is 2.8 billion euros, and the new issue confirms its strong momentum in capital market access and the diversified funding profile it achieves.”