Latest news with #Piraeus'
Business Wire
28-05-2025
- Business
- Business Wire
Piraeus Bank Successfully Priced a €500mn Green Senior Preferred Bond With Demand Exceeding €3.7bn
ATHENS, Greece--(BUSINESS WIRE)--Piraeus Financial Holdings S.A. (ATHEX: TPEIR) (OTCQX:BPIRY) (OTCQX: BPIRF) announces that its subsidiary, Piraeus Bank S.A. ('Piraeus' or the 'Bank'), has successfully completed the pricing of a new €500 million Green Senior Preferred Bond (hereinafter also called the 'Bond') at a yield of 3.140%, attracting the interest of a large number of institutional investors. The Bond has a maturity of 3.5 years and an embedded issuer call option after 2.5 years. Settlement will take place on 3 June 2025 and the notes will be listed on the Luxembourg Stock Exchange's Euro MTF market. The Bond is expected to be assigned an investment grade rating of 'Baa2' from Moody's Ratings. The net proceeds of the issuance will be directed in financing and/or refinancing in whole or in part, eligible green assets, as described in Piraeus' Green Bond Framework, providing positive environmental impact. This is the 3rd issuance of a Green Bond for Piraeus and the 2nd one out of its revamped Green Bond Framework dated May 2024. Piraeus is the only Greek Bank to have executed 3 issuances in the green area to date amounting to €1.65bn, proving its strong commitment in sustainability. Circa €0.8bn of the net proceeds of the two Piraeus outstanding Green Bonds have already been allocated to eligible green assets. Proforma for the new issuance, the Bank's MREL ratio stands at c.29.6% 1, further enhancing our buffers to more than 200bps, compared to the Jun.25 fully phased MREL requirement of 27.45%. The transaction attracted significant interest from more than 200 institutional investors, with 64% placed among asset managers, 27% to banks and private banks, 5% to hedge funds and 4% to other investors. More than 80% was allocated to international institutional investors, with demand mainly from the UK & Ireland (29%), France (18%) and the DACH 2 region (14%). Approximately 75% of the new issuance was allocated to ESG focused accounts. The total order book of the transaction exceeded €3.7 billion, being more than 7.4x oversubscribed compared to the issuance target of €500 million. The success of the transaction is a clear testament of investor confidence in Piraeus Bank. This is reflected in the tightest credit spread marked by any Senior Preferred Bond in the Greek space for a similar transaction in recent years, at 115bps, which is below the initial guidance of 145bps. The final coupon has been set at 3.00%, with a re-offer price of 99.68%. BNP Paribas, Goldman Sachs Europe SE (B&D), HSBC, J.P. Morgan, Société Générale, and UBS Investment Bank acted as joint bookrunners of the issue. Allen & Overy and Bernitsas Law Firm acted as legal advisors to Piraeus. 1 Mar.25 MREL ratio, proforma for the new €500 million Green Senior Preferred Bond and the RWA relief from the held-for-sale NPE and real estate asset transactions 2 DACH region refers to Germany, Austria and Switzerland
Associated Press
13-03-2025
- Business
- Associated Press
Piraeus Bank to Acquire Ethniki Insurance From CVC
Further to the announcement on 06 February 2025, Piraeus Financial Holdings S.A. informs the investment community that its subsidiary Piraeus Bank S.A. (' Piraeus ') has entered into a Share Purchase Agreement (hereinafter ' SPA ') to acquire 90.01% stake in the parent company of Ethniki Insurance (the ' Transaction ') from CVC Capital Partners Fund VII. As per the signed SPA, the consideration for the Transaction is €600mn in cash, on a 100% basis. The Transaction is expected to further diversify the revenue sources of Piraeus, enhancing value creation for shareholders, while it will complement our product range, covering the whole spectrum of banking, protection and investment solutions. The Transaction is accretive for Piraeus in Earnings per Share (EPS) by circa 5% and Return over average Tangible Book Value (RoaTBV) by circa 1 percentage point and it elevates fee generation to international best-in-class levels, while retaining our competitive cost efficiency aspiration. Based on the above, and including a 50% distribution payout out of 2025 results and onwards per annum, Piraeus' proforma total capital position is estimated at circa 18.5% for 2025, anticipated to reach circa 19.5% by 2027 and circa 20% by 2028. This impact translates into a capital ratio with a comfortable Pillar 2 Guidance buffer of circa 250bps in 2025, evolving to above 300bps by 2027 and close to 400bps by 2028. Throughout the period, Piraeus' CET1 ratio is expected to sustain a level of 13% and higher. Piraeus intends to achieve a Financial Conglomerate (FICO) status and pursue the application of CRR article 49 (commonly referred to as Danish Compromise) in relation to the prudential treatment of its participation in the share capital of Ethniki Insurance, which, if attained, would expand further our CET1 ratio by circa 50bps. Ethniki Insurance is a leading composite insurer in Greece, covering the whole spectrum of insurance products with a circa 14.5% market share (circa 17% in life / circa 11% in non-life) and more than €0.8bn Gross Written Premiums (' GWP '), as of 2024. Ethniki Insurance has €4bn total assets and €0.4bn shareholders' equity, as of 2023. Ethniki Insurance reported a profit before tax adjusted for non-recurring items of approximately €100mn in 2023 (latest public data). Ethniki Insurance's production network extends throughout Greece and consists of owned sales network offices and corporate network insurance agents, as well as collaborating insurance agencies and insurance brokers. The GWP generated by the aforementioned channels comprise the vast majority of the Ethniki Insurance total production, with the remaining coming from its bancassurance channel. Piraeus financial guidance for the period until 2028, as communicated earlier this year to the market, is being upgraded, considering the anticipated impact of the Transaction, as per below: Pre Transaction Post Transaction 2026 est 2027 est 2028 est 2026 est 2027 est 2028 est RoaTBV (%) ~13% ~13.5% ~14% ~14% ~14.5% ~15% EPS (€) ~0.8 ~0.9 ~1.1 ~0.9 ~1.0 ~1.2 Net fees over net revenues (%) ~25% ~25% ~25% ~28% ~28% ~28% Cost-to-core income (%) ~35% ~35% <35% ~35% ~35% <35% Total capital without Danish compromise (%) >20% ~20.5% ~21% >18.5% ~19.5% ~20% Buffer over P2G (bps) ~415 ~440 ~485 ~265 ~320 ~390 Note: Piraeus Pre Transaction data are as per 24 February 2025 guidance communicated to the market; Post Transaction illustration is proforma including Ethniki Insurance management business plan forecasts (no synergies incorporated); P2G for 2026-2028 at 16.20% from 15.97% in 2025 (phasing of O-SII buffer) The Transaction is subject to the approvals of the competent regulatory bodies. Piraeus is being advised on the Transaction by UBS Europe SE as exclusive financial advisor, Milliman as actuarial advisor, and by Milbank LLP, as well as Moratis Passas Law Firm and Potamitis Vekris Lawfirm, as international, local legal and competition counsels, respectively. Disclaimer Forward looking statements This release contains forward-looking statements, including, without limitation, statements regarding the potential benefits of the contemplated transaction, expected synergies and the anticipated capital impact. These forward-looking statements are based on the current expectations of Piraeus and are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to, the granting of regulatory approvals, to unforeseen operational challenges or changes in market conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, without any obligation by Piraeus to update regarding any future developments. This announcement does not constitute an offer to buy or the solicitation of an offer to sell any securities. SOURCE: Piraeus Financial Holdings Copyright Business Wire 2025. PUB: 03/13/2025 05:42 AM/DISC: 03/13/2025 05:42 AM
Yahoo
07-02-2025
- Business
- Yahoo
Greece's Piraeus confirms talks to buy 70% stake in Ethniki Insurance
Greece's Piraeus Financial Holdings has agreed to enter 'exclusive discussions' with CVC Capital Partners' Fund VII (CVC) to potentially acquire a 70% share in Greek company Ethniki Insurance. This transaction is valued at €469m and is expected to diversify Piraeus' revenue streams. The proforma impact on Piraeus' capital position is estimated at nearly 150 basis points (bps) as of September 2024, with a Pillar 2 Guidance buffer of more than 200bps. Ethniki Insurance, a composite insurer in Greece, has a market share of around 14%. It reported adjusted pre-tax profit for non-recurring items of around €100m and gross written premiums of €800m in 2023. As of 2023, the insurer's assets totalled €4bn and shareholders' equity was €400m. The company's network includes nearly 130 sales network offices and more than 1,600 corporate network insurance agents, supported by a network of six branches. Piraeus is considering the adoption of the Danish Compromise for the prudential treatment of its potential share in Ethniki Insurance. If finalised, this would reduce the capital impact of the acquisition to below 100bps. Piraeus received financial advice from UBS Europe, with Milliman providing actuarial advice. Legal counsel is being provided by Milbank and Moratis Passas Law Firm for international and local legal matters, respectively. CVC Capital acquired a 90% stake in Ethniki Insurance from National Bank of Greece. Piraeus CEO Christos Megalou informed journalists that the bank "is in discussions to buy National Insurance", further noting that if an agreement is finalised, it will enable the group to boost its fee revenues to 30%, up from the current 20%, reported Reuters. "Greece's Piraeus confirms talks to buy 70% stake in Ethniki Insurance " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
