Eurobank has successfully completed the pricing of €400 million of fixed-rate, resettable, subordinated notes (Tier 2) (“Eurobank Subordinated Notes” or Notes).
The bonds have a maturity date of 29 April, 2037, callable from 29 January, 2032 until 29 April, 2032 (11.25ΝC6.25), and an annual coupon of 4.125%. The settlement of the issue will take place on 29 January, 2026 and the bonds will be listed on the Euro MTF market of the Luxembourg Stock Exchange.
The transaction was received with exceptional interest by investors, resulting in total demand of €3.8 billion, with an oversubscription of 9.5 times, enabling Eurobank to raise €400 million by reducing the credit spread of the bond to 160bp from 200bp which was the initial indicative offer. The order book process attracted strong demand from foreign investors with significant geographical spread, as the Bank collected orders from 117 different investors.
In the distribution of the new issue, foreign investors represent 94%, with participation mainly from the United Kingdom and Ireland (50%), France (22%) and Germany, Austria and Switzerland (8%). Regarding the type of investors, 75% was distributed to Asset Managers, 16% to Banks and Private Banks and 3% to Insurance and Pension Funds.
The funds raised through the issuance will contribute to the ongoing/permanent coverage of the Eurobank Group's obligations regarding the Minimum Requirements in Eligible Liabilities and Own Funds (MREL) and will be allocated for Eurobank's business purposes.
Bank of America, Citibank, JP Morgan, Santander and UBS acted as Co-Managers of the offer book.
(Source: InBusinessNews)
