Eurobank EFG successfully placed €500 million today with international and domestic institutional investors, without the guarantee of the Greek Government. The issue was very successfully placed, with more than 155 local and foreign investors, and was over-subscribed by almost 3 times. It is noted that the order book, due to the substantial interest, remained open for just 4 hours
Eurobank EFG is the first Greek bank, following the recent international financial crisis, during which the international capital markets were virtually closed to Greek banks and the majority of European banks, that accessed the international debt capital markets last May with a 2year €500 million issue.
With today’s issue Eurobank EFG, is extending the maturity of the issuance beyond 2 years, which confirms the confidence of foreign investors in Eurobank EFG and the Greek banking system in general.
With these additional funds, Eurobank EFG, is enhancing its liquidity position to be able to cover the increase in its business activity and the expected increase in the Greek economic activity.
The issuance is in Euro, without the guarantee of the Greek Government, with a tenor of 3.5 years priced at mid-swaps plus 220bps, substantially lower than the May 2009 issuance. The securities were issued by EFG Hellas PLC, a subsidiary of Eurobank EFG, guaranteed by Eurobank EFG and listed on the Luxembourg Stock Exchange.
The securities are issued under the EMTN Programme with the aim of raising medium term funds for the Bank’s general funding purposes.
The lead managers for the transaction are BNP Paribas, Deutsche Bank, JP Morgan and UBS.
The long-term debt ratings of Eurobank EFG are A1 from Moody’s, BBB+ from Standard and Poor’s and A- from Fitch.