EFG Eurobank Ergasias, as originator, successfully launched today its first residential mortgage backed securities.
EFG Eurobank Ergasias, as originator, successfully launched today its first residential mortgage backed securities.
The bonds mature in year 2036, with a call option in 2011. The total size amounts to €750 million with an average funding cost of approximately Euribor + 0,19 basis points for 7 years, among the lowest priced in the market. This is the first international transaction of such size issued by one of the large Greek banks.
Eurobank Deputy CEO, Mr. Nikos Karamouzis, stated that the success of the launch coupled with the achieved credit rating and the over-subscription of the issue, reflects that the bank is well received in the international markets and has strong potential and further growth opportunities.
The residential mortgage securitization aims at broadening the bank’s funding program and allowed the Bank to tap a new investor base. At the same time, the success of the program will allow the Bank to offer competitive products and services to its clientele.
The bonds were rated by the rating agencies Moody’s and Fitch. Specifically, the amount of €693.5 million received the highest possible rating at Aaa/AAA (with coupon three month Euribor + 0,16 bps), the amount of €32 million was rated at Aa/A (with coupon three month Euribor + 0,38 bps) and the amount of €24.5 million was rated at Baa/BBB (with coupon three month Euribor + 0,78 bps).
Lead managers, arrangers and book-runners for the securitization are Citigroup, Deutsche Bank and EFG Telesis Finance.
To promote the offering of the bonds in both the European and Greek markets, a group of executives headed by Yasmine Ralli, General Manager of EFG Eurobank Ergasias, made roadshow presentations to institutional investors in London, Dublin, Paris, Brussels, Frankfurt, Munich, Madrid, Lisbon and Athens.
The over subscription of the issue manifests the success of these roadshows.