The offer book for Piraeus Bank's "green" bond, which will have an investment grade rating (Baa3), has been opened, following the bank's upgrade by Moody's, with the interest rate guidance set at 5%. 

Specifically, the bank has mandated BNP Paribas as the sole green structurer and BNP Paribas, BofA Securities, Commerzbank, HSBC, and IMI-Intesa Sanpaolo as joint bookrunners for the 5-year green bond, callable after 4 years (5NC).

The proceeds are expected to be used to finance and/or refinance the bank's eligible green assets and further strengthen the MREL base.

It should be noted that Piraeus Bank's rating was previously upgraded to Baa3 by Moody's on Monday, with the agency citing strong underlying operating profitability in 2023–24 and a favourable outlook going forward. "The bank has demonstrated its strong underlying profitability, with normalised earnings in the first quarter of 2024 growing 37% year-on-year, which combined with tight management of operating expenses results in a 29% cost-to-core ratio in March 2024.