Eurobank issues €700 million in senior preferred debt
Eurobank S.A. (hereinafter “Eurobank”) announces that it has successfully completed the pricing of €700 million Fixed Rate Senior Preferred Notes due 2032 (the “Notes”).
The Notes mature on May 25, 2032, are callable at par on May 25, 2031, offering a coupon of 3.875% per annum. Settlement is scheduled for May 25, 2026, while the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.
The level of interest in the transaction resulted in a final demand of approximately €2.7bn, i.e. an oversubscription of about 3.9 times, thus enabling Eurobank to raise €700 million at a reduced credit spread of 97 bps compared to the initial 125 bps indication level. The book building process attracted strong and geographically diverse demand from international investors, with over 90 accounts participating.
Upon allocation of the new issue, foreign investors accounted for approximately 91% of the amount of the book, with participation primarily from the United Kingdom and Ireland (32%), Germany, Austria and Switzerland combined (21%), Belgium, Netherlands and Luxembourg combined (13%) and France (12%). In terms of investor type, 58% were Asset Managers, 18% were Banks and Private Banks, 13% were Insurance and Pension Funds and 9% were Hedge Funds.
The proceeds from the issue will support Eurobank Group’s strategy to ensure continued compliance with the Minimum Requirements for Own Funds and Eligible Liabilities (MREL) and will be used for Eurobank’s general business purposes.
BNP Paribas, Deutsche Bank, Goldman Sachs, IMI – Intesa Sanpaolo, Jefferies and Nomura acted as Joint Bookrunners.
Eurobank issues €500 million in Senior Preferred debt
“Eurobank Ergasias Services and Holdings S.A.” (Eurobank Holdings) announces that its subsidiary “Eurobank S.A.” (Bank or Eurobank), completed successfully the second consecutive €500 million senior preferred issue in 2021, attracting the interest of a large number of institutional investors. The issue was over-subscribed by more than 1.5 times, which enabled Eurobank to lower the interest rate by 12.5 basis points (bps), from the 2.50% initially offered to the 2.375% re-offer yield, evidencing the investor’s confidence on Eurobank and the Greek economy.
The bond matures in six and a half years on 14th March 2028 and is callable at par in five and a half years on 14th March 2027, offering a coupon of 2.25% per-annum and is resettable on 14th March 2027. The settlement will occur on 14th September 2021 and the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.
The issue featured participation from both foreign and domestic investors. The proceeds from the issue will be used for Eurobank’s general funding purposes, including the financing of green projects.
This transaction is another step towards the implementation of Eurobank’s medium term strategy to meet its Minimum Required Eligible Liabilities (MREL) requirements scheduled for 2025, and reflects the Bank’s ongoing commitment to the protection of depositors. The new issue also contributes to the further development of the Issuer’s yield curve in the secondary market.
Barclays, Citi, Commerzbank, Credit Suisse, J.P.Morgan, acted as Joint Lead Managers.
Eurobank issues €500 million in Senior Preferred debt
Eurobank Ergasias Services and Holdings S.A.” (Eurobank Holdings) announced that its subsidiary “Eurobank S.A.” (Bank or Eurobank) has closed its first bond transaction of 2021 in wholesale capital markets, issuing preferred senior debt with a value of €500 million. Investor confidence in Eurobank’s senior bonds and credit story has allowed the issuer to generate pick demand above €1.25 billion, which enabled Eurobank to lower the interest rate by 25 basis points, from the 2.375% initially offered to the 2.125% re-offer yield.The bond matures in six years on 5th May 2027 and is callable at par in five years on 5th May 2026, offering a coupon of 2.00% per-annum and is resettable on 5th May 2026. The settlement will occur on 5th May 2021 and the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.This transaction marks Eurobank’s return to international capital markets, its first since 2017, enhancing the diversification of the Group’s investor base. The success of the undertaking evidences the market recognition of the significant progress made in Eurobank’s credit profile as well as confidence on the Greek economy.The issue attracted orders from institutional investors across 17 countries and was over-subscribed by more than two times, having received orders from more than 80 individual investors.Aside from the high demand, the issue featured participation from foreign investors, who represented around 67% of the allocated book with key participation from the United Kingdom (28%), Italy (15%) and France (15%). 44% was allocated to Asset Managers, 22% to Banks and their private banking and 19% to Hedge Funds.The proceeds from the issue will be used for Eurobank’s business purposes, including the financing of environmental projects that promote the use of energy from renewable sources.The transaction is also the first step on Eurobank’s medium term strategy to meet its Minimum Required Eligible Liabilities (MREL) requirements scheduled for 2025, and reflects the intention of the Bank to proactively continue to build a safety net of “bail-in-able” debt that increases the protection of depositors, whilst establishing a liquid pricing reference for future issuances that over time will help create a secondary curve for the issuer.BofA Securities, BNP Paribas, Goldman Sachs Bank Europe SE, HSBC and UBS acted as Joint Lead Managers of the issue.