Ethniki Insurance Priced Its Inaugural €200mn Tier 2 and Restricted Tier 1 Perpetual Bonds

Ethniki Insurance raises €200mn in Tier 2 and RT1 capital, boosting its Solvency II ratio to an estimated 190% and accessing international debt markets.

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Transaction more than 3.0x oversubscribed — The first subordinated debt capital markets issuance by a Greek insurer

ATHENS, Greece--(BUSINESS WIRE)-- Piraeus Bank S.A. (“Piraeus” or the “Bank”) announces that its wholly owned subsidiary, “The Ethniki“ Hellenic General Insurance Company S.A. (“Ethniki Insurance” or the “Issuer”), has successfully priced an inaugural dual-tranche subordinated bond issuance totalling €200mn.

The transaction comprises a €100mn Tier 2 bond (“Tier 2”) carrying a fixed annual coupon of 5.25%, with a maturity of 10.25 years and an issuer call option after 5.25 years, and a €100mn Restricted Tier 1 (“RT1”) perpetual bond carrying a fixed annual coupon of 6.875%, first callable after 5.5 years.

The settlement for both the Tier 2 and RT1 notes is scheduled for 9 September 2026. The notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.

The issuance strengthens Ethniki Insurance’s regulatory capital position, diversifies its sources of own funds and establishes direct access to the international debt capital markets. Ethniki Insurance’s Solvency II ratio as at 30 June 2026, pro forma for the new issuances and the redemption of an outstanding 10-year Tier 2 instrument of €125mn, stands at approximately 190%.

The transaction attracted significant interest from approximately 100 institutional investors for both tranches. The total order books of the transaction peaked at more than €600mn, representing more than 3.0x oversubscription relative to the combined issuance size of €200mn. The bonds were ultimately priced significantly tighter than the initial guidance (30bps and 37.5bps the Tier 2 and RT1 respectively).

Asset managers were allocated 55%, banks and private banks 25%, and hedge funds and other investors ca. 20% for the combined issuances. International institutional investors were allocated more than 70% of the issuances, with demand stemming mainly from France and the UK.

Christos Megalou, Piraeus Group’s Chief Executive Officer, stated on the Transaction:

“Ethniki Insurance is the first Greek insurer to raise capital in the debt capital markets — a milestone for the company and for the Greek insurance sector. The strength and international breadth of demand underlines the quality of the Ethniki Insurance franchise and conviction in its prospects. As a core pillar of Piraeus Group’s 2030 strategy, a well-capitalised and independently financed Ethniki Insurance will support our ambition to build Greece’s leading integrated financial-services platform, with a broader and more balanced mix of revenues."

Dimitris Mazarakis, CEO of Ethniki Insurance, commented on the Transaction:

“The strong reception of our inaugural Tier 2 and RT1 issuances reflects investors’ confidence in the Ethniki Insurance franchise, our strategy and our long-term prospects. The transaction optimizes Ethniki Insurance’s capital structure and diversifies our sources of own funds, further strengthening our ability to deliver on our strategic priorities and growth ambitions. Together with Piraeus, we are accelerating our transformation journey and unlocking significant synergies – so that we can keep supporting our clients with simple, innovative and reliable solutions to protect what matters most to them.”

Goldman Sachs Bank Europe SE acted as Sole Global Coordinator. Goldman Sachs Bank Europe SE, Piraeus Bank SA, and UBS Europe SE acted as joint lead managers of the issue. A&O Shearman and Bernitsas Law Firm acted as legal advisors to the Issuer.

About Ethniki Insurance:

Ethniki Insurance is one of Greece’s leading insurance companies, Greece’s 2nd largest composite insurer with a 13.6% market share as at end-December 2025 and the oldest insurance company in the country. It serves more than 1.9mn active customers, offering all types of insurance products covering the full spectrum of life & health and non-life products. As of H1 2026, it reported €424mn in Gross Written Premiums (“GWP”) underpinned by a well-diversified business mix. In November 2025, Ethniki Insurance was acquired by Piraeus (100% stake), a strategic transaction expected to further diversify Piraeus Group’s revenue sources, while enhancing its product offering across the whole spectrum of banking, protection and investment solutions.

Ethniki Insurance reported an IFRS profit before tax of €68mn in H1 2026, an adjusted operating result of €50mn, and a return on capital employed of 15.5%. Ethniki also maintained a solid capital position, with a Solvency II ratio (SCR) of 162% as at 30 June 2026, well above regulatory requirements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260904089779/en/

Xenofon Damalas
DamalasX@piraeusbank.gr

Source: Piraeus Bank S.A.