National Bank of Greece moves to early repayment of bond issue

The National Bank of Greece (NBG) has announced it will proceed with the early repayment of a bond loan it had previously issued, exercising its call option ahead of maturity.

The bank confirmed that the bonds, originally amounting to £200 million, were due to mature on June 2, 2027, but will now be repaid in full to investors.

Investors will receive 100 per cent of the nominal value of the bonds along with any accrued interest, in line with the terms of the issuance.

The outstanding balance of £30.93 million will be settled immediately as part of the early redemption process.

The bonds in question are Fixed Rate Resettable Unsubordinated MREL Notes, issued on December 2, 2022 under the bank’s €5 billion Global Medium Term Note Programme.

The announcement was made in accordance with Regulation 596/2014 on market abuse and the relevant provisions of Greek law 3556/2007, ensuring transparency for investors.

The bank confirmed it has exercised the call option on all remaining outstanding notes, bringing forward their repayment ahead of schedule.

The redemption will take place at nominal value, as stipulated under Condition 10.3 of the bond terms.

Any interest accrued but not yet paid will also be distributed to investors in accordance with the bond conditions.

The bank further stated that it has ensured full compliance with the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) prior to exercising the call option.

This confirms that the institution maintains sufficient capital buffers to proceed with the early repayment safely.

The move reflects a broader strategy aimed at strengthening the bank’s capital structure and optimising its funding profile.

At the same time, the bank also stated that its annual general meeting, held on April 30, was marked by strong participation and high quorum among shareholders.

During the meeting, shareholders approved key decisions related to the 2025 financial year, including profit distribution, capital measures and share buyback programmes.

The approvals underscore continued investor confidence in the bank’s strategy and financial position.

The early repayment of the bond, combined with shareholder backing for capital initiatives, highlights the bank’s efforts to enhance financial stability and flexibility moving forward.