The way to a new round of bond issuance from the banksopened yesterday’s green version bond of Piraeus Bank for an amount of EUR 500 million. The version was over 7.5 times and the interest rate stood at 3.15%.
Banks’ bond versions are estimated at 2 – 2.5 billion. euro by the end of the year and cumulatively at least 3.5 billion. euro since the beginning of 2025. Last year, the four major banks have gathered at least 6.5 billion via bonds. euro. The pumping of new funds through bond editions is a one -way street after the growth of the Banking Balance Sheets, not only through acquisitions, with a typical example of the acquisition of the Hellenic Bank by Eurobank, but also through their credit expansion.
Bank balance sheets are increasing the risk weighted for the risk of assets, forcing the creation of larger capital pillows. And this, despite the fact that banks have covered the minimum requirement of equity and eligible obligations (Mrel funds) set by each of them by SRB. However, these goals were achieved with the balance sheets of the end 2024 and not with the data created by the further development of banks (although the profits produced by banks are capitalized and also cover Mrel obligations).
In addition, earlier on the deadline (31/12/25) in terms of achieving the MREL objectives, the SRB brings the commitment of Greek banks to be fully complied with the requirements for the eligible (in case of resolution) funds, 6 months earlier, 30/6/65. Which means that Greek banks will not be complacent, but will hurry to show even greater concentration of funds through bond editions in order to enhance their credibility over the SRB. Thus, they will be able to ensure that the SRB has no reason to intervene in their business plan or veto divide and bonus distributions.