Alpha Bank Tier 2 bonds

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The EBRD invested EUR 15 million in a benchmark EUR 500 million subordinated bond issuance by Alpha Bank A.E., a commercial bank incorporated in Greece, in February 2020. This is the first instrument issued by Alpha Bank since the introduction of the EU Bank Recovery and Resolution Directive that meets the regulatory minimum requirements for own funds and eligible liabilities (MREL) and marks the bank's post-crisis return to the capital market with an unsecured instrument. The Tier 2 capital eligible bonds have a 10-year maturity, with a call option after the fifth year, and are listed on the Luxembourg Stock Exchange.

The EBRD further invested EUR 35 million in a benchmark EUR 500 million subordinated bond issuance by Alpha Bank A.E. in March 2021. The Tier 2 capital eligible bonds have a 10-year maturity, with a call option after the fifth year, and are listed on the Luxembourg Stock Exchange.

Project ID 51547

Status Complete

Location

Greece

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Ioannis Asimelis
ioannis.asimelis@alpha.gr
+302103264118
+302103268309
www.alpha.gr
40 Stadiou Str., Athens, 102-52, Greece

Project ID 51547

Status Complete

Location

Greece

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

27 Nov 2019

Disclosure date

19 Feb 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Alpha Bank Tier 2 Bonds (Greek) (PDF, 0.64MB)

Project description

Project objectives

The Project boosts the resilience of a systemic bank in Greece in the context of on-going restructuring and MREL requirements phasing in at EU level and supports the bank in implementing its recently announced strategic transformation plan and re-establishing its regular access to capital markets with unsecured instruments. Furthermore, the EBRD promotes resource efficiency in the country by requiring Alpha Bank to allocate funds in the amount of 1.5 times of EBRD's subscription to finance green investments in renewable energy and energy efficiency.

Transition impact

ETI Score:62

ject delivers transition impact through the Resilient quality, as the bonds issued enhance Alpha Bank's capital buffers, to better equip it for the ongoing and future NPE reduction activities, and contribute to the optimisation of the bank's capital and funding structure by building up the Tier 2 and MREL-eligible instruments layer and diversifying liability sources. The Project also supports the Green transition quality and the EBRD's Green Economy Transition ("GET") approach in Greece through Alpha Bank allocating a multiple of the EBRD investment towards projects which meet strict GET-eligibility criteria.

Client information

ALPHA BANK AE

Alpha Bank is the second largest lender in Greece with a loan market share of 24% as of end-September 2019. It is listed on the Athens Stock Exchange with current market capitalisation of EUR 2.8 billion. The Hellenic Financial Stability Fund is the largest shareholder with an 11% stake, with the remaining 89% held by more than 110,000 investors. Alpha Bank is rated B (Positive) by S&P, Caa1 (Positive) by Moody's and CCC+ by Fitch.

EBRD Finance Summary

EUR 50,000,000.

Total project cost

EUR 1,000,000,000.

Additionality

The Project is additional in terms of financing structure and risk mitigation, as given the anticipated large volumes of bail-in-able instruments issuance by Greek banks over the next few years. EBRD's participation facilitates further mobilisation of stable, long-hold institutional investors. The project also involves an innovative structure and standard-setting in the request to allocate EBRD participation proceeds to GET-eligible projects meeting certain demanding standards and certification requirements. This is a pilot feature for financing in the Greek banking sector and helps Alpha Bank promote green projects and enhance awareness and deployment of funds in this area and sets a market example for sustainable finance.

Environmental & Social Summary

Categorised FI (2014 ESP). Alpha Bank Greece is an existing client and well known to the EBRD through previous exposures. Under the existing exposures, Alpha Bank is in compliance with the EBRD's Performance Requirements 2, 4 and 9. Alpha Bank will continue to comply with these PRs, implement EBRD's applicable E&S Risk Management Procedures including the specific eligibility criteria for wind, solar, hydro, geothermal or biomass projects, as relevant; and continue to submit annual environmental and social reports to the EBRD.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Ioannis Asimelis
ioannis.asimelis@alpha.gr
+302103264118
+302103268309
www.alpha.gr
40 Stadiou Str., Athens, 102-52, Greece

PSD last updated

22 Mar 2021

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search

Alpha Bank Tier 2 bonds

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)