A Piraeus Bank bond issue is credit positive for the bank as it strengthens its capital base and diversifies its financing, Moody’s said in a report released on Monday, according to ANA.
In a Credit Outlook report, Moody’s pointed out that the successful issuance of a Tier II subordinated debt by Piraeus Bank on June 19 strengthened the bank’s capital adequacy, raising the bank’s capital adequacy ratio by around 90 basis points, while at the same time diversifying its funding sources.
The credit rating agency also added that demand for the issue was strong, totaling 850 million euros from more than 135 investors and noted that the 10-year bond was carrying a coupon of 9.75 pct. Moody’s said the bank’s new pro forma phased-in CAR rose to around 15.5 pct.
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