#Greece #Athens #White Case LLP #Greek Securities #GDP-linked Bonds

Institutional Investors Form Ad Hoc Group Regarding Greek GDP-Linked Securities

On May 15, 2025, a significant development unfolded concerning Greek GDP-linked securities. Several major institutional investors collectively holding a notional amount exceeding €61 billion have established an ad hoc group to address pressing issues related to these securities.

Background of the Securities

The GDP-linked securities in question have an expiration date set for October 15, 2042, and are linked to the economic performance of Greece. This financial instrument was designed to provide a level of protection to investors by tying returns to the country's economic growth.

However, recent actions taken by the Hellenic Republic, particularly concerning its Purchase Option under Condition 6.1 of the Securities, have raised concerns among investors. The group formed by these institutional investors controls over 40% of the outstanding securities and aims to protect their interests in light of the Republic's recent legal maneuvers.

Legal Proceedings and Concerns

The Republic initiated legal proceedings in the English High Court against Wilmington Trust (London) Limited, the appointed trustee for the securities, on May 6, 2025. The focus of these proceedings revolves around the exercise of the Purchase Option, particularly the methodology applied in calculating the securities' call price, which has been a point of contention and concern for the investors in the newly formed group.

The institutional group expressed dissatisfaction with the potential implications of the court's decisions, especially regarding the transparency and fairness of the pricing calculation. Legal advisor White Case LLP has been retained by the investors to navigate these complexities and advocate for their interests.

Call to Action for Holders

Investors holding these GDP-linked securities are encouraged to reach out to White Case LLP to gain insights on the group's perspectives and actions regarding the ongoing legal proceedings. It is critical for holders to stay informed and engaged during this turbulent period, as decisions made in court could have far-reaching implications for their investments and the securities' future performance.

Conclusion

As the legal situation develops, the collective voice of the institutional investors through this ad hoc group underscores the importance of collaboration in navigating the evolving landscape of international finance and governance. The outcome of the proceedings may significantly impact the valuation of Greek GDP-linked securities, and interested parties are advised to remain vigilant and proactive in seeking updates and legal counsel.

In summary, this is a pivotal moment for holders of Greek GDP-linked securities, with substantial implications hinged on the ongoing court case and the resulting interpretations of the Purchase Option. The next steps taken by the Republic, the court, and the investors will be closely watched as it unfolds.