UPDATE 1-Alpha Bank opens books on new three-year senior bond

Thu Jun 12, 2014 5:01am EDT

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By Helene Durand

LONDON, June 12 (IFR) - Alpha Bank is set to offer the lowest new issue yield from a Greek bank since the country's institutions returned to the capital markets on Thursday, helping further cement the recovery story of one of the eurozone's most troubled jurisdictions.

The Caa1/CCC/B- rated bank is marketing the three-year bond at 3.75% area via Citigroup, HSBC, JP Morgan and Mediobanca.

This level is much lower than where Piraeus raised three-year funds back in March and capitalises on the rally seen across all peripheral credits in recent weeks.

Piraeus which is rated Caa1/CCC/CCC priced a 500m three-year with a 5.125% yield. That transaction was yielding at 3.3% on Thursday, according to a bookrunner.

Alpha Bank's deal will also price tighter than where National Bank of Greece priced a 750m five-year in April. That deal came with a 4.375% coupon and was quoted at 4.2%.

The deal will be priced later today, subject to market conditions. (Reporting by Helene Durand; editing by Alex Chambers)