Piraeus Bank on Wednesday announced a plan to issue a 1.25-billion-euro covered bond issue, as part of a plan to further boost its liquidity.

The bond issue will have a maturity of three years, with an option to extend for another 10 years, carrying an interest of one-month Euribor plus 100 basis points. The issue was rated A- by Fitch Ratings and will be traded in the Luxembourg Stock Exchange.

Piraeus Bank has announced plans to issue covered bonds worth 3.0 billion euros. Barclays Capital will act as adviser to the issue.