18 Sep 2026
Alpha Bank launches €500M bond buyback offer
- RE+D Magazine
Alpha Bank is launching a conditional tender offer for its existing €500 million fixed-rate reset Senior Preferred bonds, as part of its strategy to refinance its liabilities and manage its position against the Minimum Requirement for own funds and Eligible Liabilities (MREL).
On 18 September 2026, the bank announced an invitation to holders of the bonds, identified by ISIN XS2388172855 and maturing in 2028, to tender their securities for cash.
The offer covers the entire €500 million outstanding amount and is subject to the terms and conditions set out in the relevant tender offer memorandum dated 18 September.
New Bond Issue Linked to the Tender Offer
A key element of the transaction is that the repurchase of the existing bonds is subject to certain conditions. These include the successful completion of a new Senior Preferred bond issue by Alpha Bank.
The new issue will also comprise fixed-rate reset Senior Preferred bonds, with its completion subject to prevailing market conditions.
Through the transaction, Alpha Bank is effectively seeking to refinance its existing bonds maturing in 2028 through the issuance of new securities, while retaining flexibility in managing its capital and funding position.
Priority for Existing Bondholders
As part of the allocation of the new bonds, Alpha Bank reserves the right, at its sole discretion, to give priority to existing holders of the bonds who confirm that they have tendered, or intend to validly tender, their securities for repurchase.
This option is available to holders who provide the relevant binding confirmation either to the bank or to one of the dealer managers involved in the offer.
The structure therefore links the tender offer to the new bond issue, allowing existing investors to participate in the refinancing process, subject to the terms of the transaction.
MREL at the Centre of the Transaction
The transaction forms part of Alpha Bank’s management of its position with regard to the Minimum Requirement for own funds and Eligible Liabilities (MREL).
MREL is a key component of the European bank resolution framework and requires credit institutions to maintain an adequate buffer of capital and eligible liabilities to absorb losses and recapitalise in the event of resolution, without, in principle, relying on public funds.
The management of bond issuances is therefore part of banks’ broader efforts to maintain the required levels of eligible liabilities while optimising their funding profiles.
Banks Involved in the Transaction
The following institutions are acting as Dealer Managers for the tender offer and Joint Lead Managers for the new issue:
AXIA Ventures Group Ltd
HSBC Continental Europe
J.P. Morgan SE
Morgan Stanley Europe SE
Société Générale
UBS Europe SE
UniCredit Bank GmbH
The involvement of international investment banks in the transaction is consistent with standard market practice for European banks undertaking liability management exercises and bond issuances of this nature.