Greece Secures Landmark Ruling in €62 Billion GDP-Linked Securities Case

Cleary Gottlieb represented the Hellenic Republic in securing a significant victory in the English High Court.

In a judgment handed down by The Honorable Mr. Justice Bright, the court upheld the Republic’s exercise of its contractual right to repurchase its GDP-linked securities and confirmed that the Republic had correctly determined the repurchase price pursuant to the contractual pricing mechanism.

Following a two-day trial on April 21 and 22, 2026, the court granted declaratory relief confirming that the Republic validly exercised its purchase option under condition 6.1 of the terms and conditions of the GDP-linked securities. The court further granted a declaration that the call price of €252.28 per 1,000 securities was correctly calculated and determined by reference to bid and ask prices provided by the Bank of Greece’s Electronic Secondary Securities Market (HDAT) over the relevant 30 trading days, as required under the terms and conditions of the securities.

The case concerned GDP-linked securities issued by Greece in 2012 as part of its sovereign debt restructuring, with an aggregate notional amount exceeding €62 billion, making them the largest series of GDP-linked securities ever issued by a sovereign. The dispute arose after certain investors challenged the validity of the Republic’s repurchase notice and the methodology used to determine the call price. The Republic sought declaratory relief from the English courts to resolve these issues conclusively.

In a detailed judgment, the court rejected arguments that pricing should have been derived from alternative market sources and confirmed that the Republic had correctly applied the contractual framework in determining the price.

This case stands out for its innovative use of declaratory relief to deliver a single ruling on the application of a complex financial instrument, avoiding fragmented litigation and inconsistent outcomes and providing certainty for issuers and other affected parties. The court endorsed the use of declaratory relief in the circumstances as the “most effective” way of resolving the dispute.

“We are pleased that the court has confirmed the integrity of the contractual framework governing these securities and that Greece had correctly determined the repurchase price pursuant to the contractual pricing mechanism,” said partner Jim Ho, who has advised Greece for more than 15 years.

“The judgment reinforces the importance of giving effect to the terms agreed by the parties and underscores the primacy of contractual language in complex financial instruments,” said partner Naomi Tarawali, who led on the litigation aspects of the case.

“We welcome the English High Court’s judgment and the clarity it provides to holders and the wider market. The judgment confirms Greece’s commitment to acting in good faith and in accordance with the applicable contractual framework,” said Dimitrios Tsakonas, Director General of the Public Debt Management Agency (PDMA) of the Hellenic Republic.

The Cleary team was led by partners Jim Ho and Naomi Tarawali and included associates Emma Williams and Georgina Evison. The firm instructed barristers Alain Choo Choy KC and Sam O’Leary of One Essex Court.