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Eurobank EFG: Issuance of Callable Hybrid Instruments

During the first quarter of 2009, Eurobank EFG improved its Core Tier I ratio to 8.6% from 8.0%. This achievement was based on the quarter’s profitability, the reduction of the risks undertaken by the Bank as well as other initiatives.

In addition to the Group’s internal capital generation, through continued profitability, Eurobank intends, during the next two years, to take advantage of improving conditions in the international capital markets and proceed with all actions necessary for the issuance of hybrid instruments of up to €500 million, which will count as Tier I capital, aiming at the repayment of other regulatory capital instruments, when allowed by the economic conditions and subject to relevant approvals.

These instruments will have a fixed annual coupon and will be perpetual and callable by the Bank after the fifth year, subject to approval by the Bank of Greece. In case the Bank does not exercise its right to redeem the securities, the investors will have the option, after the fifth year, to convert them to Eurobank shares, under predetermined terms and conditions. The final terms will be determined during the issuance of the instruments according to the prevailing market conditions.