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Covered Bonds Issue

Eurobank EFG, as part of its strategic planning for the optimal use of its assets and for further enhancing its liquidity for the development of its activities, has issued today (08.03.2010) the first series of covered bonds of Euro 500 million, rated Aa2 by Moody’s. The arrangers of this issue were Deutsche Bank and HSBC.  The issue has a maturity of 5 years, which can be extended by 10 years, with a coupon rate based on the ECB rate plus a margin of 250 bps. The cover pool for this bond consists mainly of residential mortgage loans originated by the bank.

The €500million covered bond is issued under a programme which was approved during the 03.03.2010 meeting of the Board of Directors of Eurobank EFG. Under this programme, Eurobank, subject to its discretion, will be able to issue covered bonds up to an amount of Euro 5 billion, efficiently utilizing its assets.
Eurobank EFG is planning more covered bond issues during the year.