Today EFG Eurobank Ergasias announced the issuance of €400 million unsecured subordinated floating rate notes by EFG Hellas PLC, its subsidiary in London.
Today EFG Eurobank Ergasias announced the issuance of €400 million unsecured subordinated floating rate notes by EFG Hellas PLC, its subsidiary in London. The notes have a 10-year maturity with a call provision after 5 years. The notes pay floating rate interest quarterly based upon a coupon of 3-month Euribor + 0.50% for the first five years.
This is the debut issuance of unsecured subordinated notes under the Euro Medium Term Note (EMTN) programme of EFG Hellas PLC. The notes are guaranteed by EFG Eurobank Ergasias and qualify as lower tier II capital for the Bank.
The notes issuance was well received by both institutional investors and banks across Europe as well as Greece, which was confirmed by the oversubscription. The notes will be listed on the Luxembourg Stock Exchange.
The Joint Lead Managers are Credit Suisse First Boston and EFG Eurobank Ergasias. The syndicate group is comprised of National Bank of Greece as Senior Co-Manager and the following Co-Managers: Alpha Bank, Banco Commercial Portugues, Bank of Cyprus, Emporiki Bank and Postal Savings Bank of Greece.
The purpose of this notes issuance is to take advantage of the current market conditions to enhance the regulatory capital base of EFG Eurobank Ergasias in anticipation of expected expansion in its operations in Greece and abroad.