Piraeus Financial Holdings Successfully Prices €400 Million AT1 Instrument

On June 24, 2025, Piraeus Financial Holdings S.A. (“Piraeus” or the “Group”), a prominent financial institution based in Athens, Greece, announced the successful pricing of a €400 million Fixed Rate Reset Additional Tier 1 (AT1) Perpetual Contingent Temporary Write-Down Notes. This financial move is a significant step in the company’s strategic plan, aimed at optimizing its capital structure and enhancing its capital adequacy ratio.

The AT1 Notes carry a coupon rate of 6.750%, with interest payments made semi-annually on June 30 and December 30 each year. These notes are perpetual and can be called on December 30, 2030, or on any subsequent interest payment date, subject to the terms and conditions outlined in the notes. Settlement for these notes is scheduled for June 30, 2025, and they will be listed on the Luxembourg Exchange’s Euro MTF market.

Moody’s Ratings has assigned a “B1” rating to these notes, reflecting their credit quality. The successful issuance of these AT1 notes is expected to bolster Piraeus Financial Holdings’ total capital adequacy ratio to 20.6% on a proforma basis as of March 2025. This enhancement in capital adequacy is a crucial component of the Group’s strategic objectives, aimed at strengthening its financial position and supporting its diverse range of banking and financial services.

Piraeus Financial Holdings operates across various segments, including retail banking, corporate banking, investment banking, asset management, and treasury services. The company also engages in a wide array of activities such as real estate, IT, renewable energy, and more, reflecting its diversified business model.

The AT1 offering has attracted significant interest, underscoring the confidence of investors in Piraeus Financial Holdings’ strategic direction and financial health. This successful transaction marks a pivotal moment for the company as it continues to implement its strategic plan and optimize its capital stack for future growth and stability.