Greek Bank’s Debut AT1 Sale Gets Big Bids With Risk Back on Menu

Greek lender Eurobank Ergasias Services and Holdings SA drew strong demand for a debut Additional Tier 1 bond in a successful test of risk appetite for investors in Europe’s debt market.

The bank priced €500 million ($566 million) of the perpetual notes callable after six years with a 6.625% coupon, according to a person familiar with the matter. Orders for the sale topped €4 billion, allowing the lender to trim the coupon level from an initial target in the 7.25% area.

Sales of riskier debt have been increasing in recent weeks, with Commerzbank AG issuing an AT1 on Tuesday that ...