EFG Eurobank, successfully launched its second residential mortgage backed securities. | Eurobank
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EFG Eurobank, successfully launched its second residential mortgage backed securities.

EFG Eurobank, as originator, successfully launched yesterday its second residential mortgage backed securities, Themelion II
EFG Eurobank, as originator, successfully launched yesterday its second residential mortgage backed securities, Themelion II.
The total size amounts to €750 million at an average funding cost of Euribor + 17,5 bps for 7 years and an effective maturity in 7 years.
This is the second issue for EFG Eurobank from the securitization of residential mortgage loans in the international market following a similar securitization amounting to € 750 million launched in June 2004.
The residential mortgage securitization aims at broadening the bank’s funding program and finding alternative sources of long term liquidity.  The success of the program allows the Bank to offer competitive products and services to its clientele.
The bonds were rated by rating agencies Standard & Poors, Moody’s and Fitch.  Specifically, the amount of €690 million received the highest possible rating of AAA/Aaa/AAA (with coupon three month Euribor + 16bps), the amount of €37.5 million was rated at A/A2/A+ (with coupon three month Euribor + 28 bps) and the amount of €22.5 million was rated at BBB/Baa2/BBB+ (with coupon three month Euribor + 50bps).
The Lead Managers for this securitization are Citigroup Global Markets Ltd, Morgan Stanley & Co International Ltd and EFG Telesis Finance.
To promote the offering of the bonds in both the European and Greek markets, a group of Eurobank executives made roadshow presentations to institutional investors.  The strong interest of institutional investors manifests the success of these roadshows as the total size of the book reached the region of €2 billion, which represents an oversubscription of 2.7 times.