“Eurobank Ergasias Services and Holdings S.A.” (Eurobank Holdings) announces that its subsidiary “Eurobank S.A.” (Bank or Eurobank) has closed its first bond transaction of 2021 in wholesale capital markets, issuing preferred senior debt with a value of €500 million. Investor confidence in Eurobank’s senior bonds and credit story has allowed the issuer to generate pick demand above €1.25 billion, which enabled Eurobank to lower the interest rate by 25 basis points, from the 2.375% initially offered to the 2.125% re-offer yield.
The bond matures in six years on 5th May 2027 and is callable at par in five years on 5th May 2026, offering a coupon of 2.00% per-annum and is resettable on 5th May 2026. The settlement will occur on 5th May 2021 and the Notes will be listed on the Luxembourg Stock Exchange’s Euro MTF market.
This transaction marks Eurobank’s return to international capital markets, its first since 2017, enhancing the diversification of the Group’s investor base. The success of the undertaking evidences the market recognition of the significant progress made in Eurobank’s credit profile as well as confidence on the Greek economy.
The issue attracted orders from institutional investors across 17 countries and was over-subscribed by more than two times, having received orders from more than 80 individual investors.
Aside from the high demand, the issue featured participation from foreign investors, who represented around 67% of the allocated book with key participation from the United Kingdom (28%), Italy (15%) and France (15%). 44% was allocated to Asset Managers, 22% to Banks and their private banking and 19% to Hedge Funds.
The proceeds from the issue will be used for Eurobank’s business purposes, including the financing of environmental projects that promote the use of energy from renewable sources.
The transaction is also the first step on Eurobank’s medium term strategy to meet its Minimum Required Eligible Liabilities (MREL) requirements scheduled for 2025, and reflects the intention of the Bank to proactively continue to build a safety net of “bail-in-able” debt that increases the protection of depositors, whilst establishing a liquid pricing reference for future issuances that over time will help create a secondary curve for the issuer.
BofA Securities, BNP Paribas, Goldman Sachs Bank Europe SE, HSBC and UBS acted as Joint Lead Managers of the issue.
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